Rare Earth Metals Market Size Growth - By Type (Cerium, Dysprosium, Erbium, Europium, Neodymium, Holmium, Lanthanum, Lutetium, and Others), By Application (Metallurgy, Batteries, Magnets, Glass & Ceramics, Polishing Agents, and Others), and By Region: Statistics Reports, Supply & Demand Analysis, Global Opportunity 2025-2032

Global Market Synopsis, Forecast, Trend, and Growth Up To 2032

Rare Earth Metals Market was valued at US$ 4.17 Bn in 2025, it is estimated to grow at a CAGR of 6.7 % from 2025 to 2032 and reach US$ 8.23 Bn by the end of 2032. The government initiatives towards rare earth metals are the primary driving forces in the growth of the rare earth metals market around the globe. Rare earth metals are also referred to as rare earth elements (REEs). Rare earth metals constitute a group of 18 chemically similar elements in the periodic table. In truth, rare earth metals abound in the Earth's crust; however, they tend to lack concentrated deposits and thus possess monetary value and raise difficulties in their extraction.

Overall, the rare earth metals market is mainly driven by global adoption of electronic vehicles coupled with on-going demand for smart technologies that use permanent magnets available through rare earth metals.

The Rare Earth Metal Market is developing rapidly with increased demand in high-tech industries such as electronics, renewable energy, and electric vehicles. These include neodymium, dysprosium, and terbium metals in permanent magnets, batteries, and high-tech alloys. China dominates the market with over 80% global production and refining capacity, but efforts to diversify sources and increase recycling are gathering momentum. Technological developments and governmental policies toward a greener energy economy drive growth. However, its mining and processing associated with rare earth metals raise a lot of environmental concerns.

Impact of AI on the Market for Rare Earth Metals

In the emerging world of AI, the market for rare earth metals could not be an exception, and it is not affected by the waves of AI within the global market. This is, in a manner of speaking, unprecedented and changing the outlook of the rare earth metals market by increasing efficiency in the process of earth search and mining as well as through the discovery of new metals or earth elements using predictive analytics.

AI-powered technologies have made it possible to perform identification processes in the realm of rare earth deposits more precisely and at lesser costs. It also aids the refining process by preventing equipment failures and their probable causes. Optimizing resource allocation, enhancing overall productivity, and reducing adverse environmental impact characterizes AI technology.

Rare Earth Metals Market Trends

Government initiatives towards rare earth metals to fuel the rare earth metals market

Owing to their ultimate qualities, such as high quality and characteristic features, rare earth metals are in huge demand across several types of end-use sectors. The rare-earth elements (REEs) were long known only to an extremely limited group of people, including chemists, geologists, materials science specialists, and engineers.

Due to public awareness of the critical, specific properties that REEs lend to current technology, Chinese control over REE production and supply, and international reliance on China to meet most of the world's REE supply, REEs have become much more visible in the 21st century through various media.

To extract rare earth metals from China's grip many government authorities in their countries planned for the development of their country through these policies. Policy MSP or Multilateral Minerals Security Partnership, this was initiated on June 2022, and it is set to unite the countries towards the formation of robust key mineral supply chains to reach climate goals. The US, Canada, Australia, the Republic of Korea, Japan, and several European nations form part of this group.

Under The ONSHORE Manufacturing Act, the US Government is a program of financial investment within the United States Department of Energy for the purpose of providing financial assistance to business organizations primarily for rare earth metallurgical/manufacturing facility development, wherein finished products are produced. It shall create a multilateral fund for investment for the Secretary of State to cooperate with US allies in the safe production of global supply chains for rare earth. 

Calls for directing the DOL to initiate a workforce development strategy to support education and training programs at every stage of rare earth manufacturing.  It also instructs the President to submit to Congress a plan of action for increasing domestic product production and the development of technologies under the Defense Production Act, in consultation with appropriate government agency heads and industry stakeholders. Bans "foreign entities of concern," that is, entities owned, controlled, or dominated by the DPRK, PRC, Russia, or Iran, and other persons and entities believed to be engaged in activities harmful to the national security or foreign policy of the United States, from participating in the program. Includes a provision allowing DOE to defer or withhold payments from a recipient if they collaborate on research projects or exchange intellectual property with a bad actor foreign firm.

Market Scope

Competitive Landscape

Some of the major players functioning in the rare earth metals industry include:

• Solvay (Belgium), Hitachi Metals Ltd. (Japan)
• Geomega Resources Inc. (Canada)
• Shenghe Resources Holdings Co., Ltd. (China)
• Baotou Rare Earth (China)
• China Minmetal Rare Earth (China)
• IREL (India)
• Metall Rare Earth Limited (China)
• Arafura Resources (Australia)
• Canada Rare Earth Corporation (Canada)
• Lynas Corporation (Australia)
• Northern Minerals (Australia)
• Iluka Resources (Australia)
• Lynas Rare Earths Ltd. (Malaysia)
• Jiangsu Huahong Technology Co., Ltd. (China)
• GanZhou QianDong Rare Earth Group Co. Ltd. (China)
• Sigma-Aldrich (United States)
• Avalon Advanced Materials (Canada)

Rare Earth Metals Market Segmentation

By Type Segment

The Rare Earth Metals Market segmentation based on type has been segmented as cerium, dysprosium, erbium, europium, neodymium, holmium, lanthanum, lutetium, and others. Among these, cerium is expected to lead in the Rare Earth Metals Market share during the forecast period.

This element finds widespread application in catalysis for various industrial applications. It has excellent redox properties and is also effective for catalytic converters in automobiles, used to reduce emissions. Rising demand for such catalytic converters owing to stricter environmental regulations across the globe, especially in the automotive industry, have encouraged its consumption as well. Its use has dramatically increased in consequence.

It is being used in most applications as cerium oxide or ceria which is the key element in polishing applications. Cerium has applications in glass, optics, and other precision surfaces; particular improvements in the development of the electronics industry, such as production of smartphones and tablets, but also in large display screens, require cerium-based polishing compounds.

January 2023, Sweden-based mining firm LKAB found rare earth oxides worth one million metric tons. Those oxides have applications in electric vehicles and wind turbines.

By Application Segment

Rare Earth Metals Market on the basis of application, segmented as follows: metallurgy, batteries, magnets, glass & ceramics, polishing agents, and others. Out of which the magnets segment dominated base year market and is also projected to be holding a dominating share in the forecasted period as well. Rare earth magnets are essential components in electric motors applied in a wide range of applications, including electric vehicles (EVs), hybrid vehicles, industrial machinery, and consumer electronics.

These magnets possess high magnetic strength with compactness and efficiency, making for better motor performance with energy savings. There is a buzz for rare earth magnets due to increased demand for EVs and other electric technologies. Wind turbines use generators based on rare earth magnets to generate power efficiently. Strong magnetic field generated by such magnets aids in transforming the mechanical energy of wind into electricity. This is why there is a corresponding increase in the demand for wind turbines as renewable energy consumption grows; hence the growing demand for rare earth metals.

Regional Outlook

By Region, the report studies the market for rare earth metals in North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. Rare earth metals industry in Asia Pacific could make the region the largest expanding global market for rare earth metals. APAC, China in particular, has always dominated the production of rare earth metal. China has significant rare earth deposits and remains the largest producer as well as exporter of rare earth.

The rare earth market structure of the global rare earth market came to be due to its production dominance. With such a vital position in the production and supply of rare earth, China dominated related market dynamics. This dominance has created apprehensions about supply security and price volatility, in turn motivating other countries to seek diversification and to build their own rare earth metal sources.

The APAC region, where Japan, South Korea, and Taiwan are located, is one of the primary production-based centers of high-tech industries. These high-tech industries consume rare earth metals for applications like electronics, automotive, renewable energy, and telecommunications. This growth can be attributed to the expansion of these industries in the region of APAC.

Recent Developments

For example, in August 2022, Lynas Rare Earths Ltd announced its intention to increase the capacity at its Mt Weld mine, which is located in Western Australia and has deposits of neodymium (Nd) and praseodymium (Pr). Reportedly, the expansion work will start in early 2023, while full operation is planned for 2024.

In April 2022, Iluka Resources Ltd announced an investment of USD 1.2 billion in developing the Eneabba Phase 3 rare earth refinery in Western Australia in a dedicated rare Earth oxides production stream. This investment is expected to position Iluka as a strategic center for the downstream processing of Australia's rare earth resources.

In May 2023, Iluka Resources announced their plan to increase their rare earth processing plant already operational in Australia. The total project has an estimated cost of USD 200 million. It is expected to increase the capacity of the plant by about 50%.

Segments Covered in the Report

Rare Earth Metals Type Outlook

• Cerium
• Dysprosium
• Erbium
• Europium
• Neodymium
• Holmium
• Lanthanum
• Lutetium
• Others

Rare Earth Metals Application Outlook

• Metallurgy
• Batteries
• Magnets
• Glass & Ceramics
• Polishing Agents
• Others