Market Overview
The global rare earth elements market was valued at USD 12.44 Billion in 2024 and is projected to reach USD 37.06 Billion by 2033, growing at a CAGR of 12.83% during 2025-2033. Market growth is driven by rising demand for clean energy technologies and extensive usage of consumer electronics worldwide. China dominates the market with a 58.3% revenue share in 2024, while magnets remain the leading application segment, critical for electric vehicles and wind turbines.

Study Assumption Years

Base Year: 2024
Historical Year/Period: 2019-2024
Forecast Year/Period: 2025-2033

Rare Earth Elements Market Key Takeaways
• Current market size was USD 12.44 Billion in 2024.
• The market is expected to grow at a CAGR of 12.83% during 2025-2033.
• The forecast period spans from 2025 to 2033.
• China held the largest market share of 58.3% in 2024 due to strong reserves, mining infrastructure, and refining capabilities.
• Magnets represent the largest application segment with a 31.2% revenue share, driven by EVs, wind turbines, and consumer electronics.
• Growth is supported by clean energy adoption and rapid electrification of transportation.
• The United States is strengthening domestic rare earth production through government-backed initiatives.
• Technological advancements and strategic partnerships are accelerating market expansion.

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Market Growth Factors
The rare earths trade has a major driver, increased demand in clean energy technologies. Permanent magnets for wind turbines and motors for electric vehicles use rare earths. Global sustainability goals, along with renewable energy policies that expand, strongly demand neodymium, dysprosium, and other critical elements. Dysprosium and neodymium demand could rise to 2600% and 700% in 25 years. Better battery and energy storage technology supports these trends.

Rare earth elements increasingly apply within numerous end-user industries, and this drives the growth of the rare earth element market. The automotive industry is a prominent consumer of rare earth magnets and catalysts within electric vehicles. Rare earths see more consumption globally, especially in Asia-Pacific countries since consumer electronics demand grows, and those countries produce more LEDs and LCDs. Aerospace, nuclear energy, and high-performance alloys represent further applications in industry.

Government backing, policies and initiatives fuel market growth. For example, the DOE funds domestic REE so it can process them in the US to reduce dependence on Chinese imports. Recycling initiatives, international collaboration, and mineral auctions in countries such as India are diversifying of supply chains and enabling domestic sourcing of critical minerals for clean energy and electric mobility.

Market Segmentation

By Application:
• Magnets: The largest segment with a 31.2% revenue share, used extensively in electric vehicles, wind turbines, robotics, and consumer electronics.
• NiMH Batteries
• Auto Catalysts
• Diesel Engines
• Fluid Cracking Catalyst
• Phosphers
• Glass
• Polishing Powders
• Others

Regional Insights
China leads the global rare earth elements market with a 58.3% revenue share in 2024. This dominance is supported by extensive reserves, advanced mining and refining infrastructure, and strong government policies including export controls and R&D investments. High domestic demand from renewable energy, electronics, and electric vehicle sectors further strengthens China’s influence over global supply and pricing.

Recent Developments & News
• May 2025: The U.S. allocated over USD 439 Million under the Defense Production Act to develop a complete domestic rare earth supply chain.
• April 2025: Cyclic Materials announced a USD 20 Million rare-earth recycling plant in Arizona to process EV motor and hard drive scrap.
• December 2024: Defense Metals released the Wicheeda REE Project pre-feasibility study with price projections by Argus Media.
• August 2024: University of Wyoming partnered with ClimateChain to deploy blockchain-based REE supply chain tracking.
• April 2024: Saskatchewan Research Council signed a five-year supply agreement with Vietnam’s Hung Thinh Group.
• April 2024: MP Materials secured USD 58.5 Million to build the first integrated rare earth magnet facility in Texas.
• March 2024: Australian Strategic Materials partnered with Bechtel for the Dubbo Project FEED services.
• January 2024: Kazakhstan announced collaboration plans to develop 15 rare earth deposits targeting clean energy and electronics.

Key Players
• Arafura Rare Earths Limited
• Avalon Advanced Materials Inc.
• Baotou Jinmenghui Magnetic Materials Co., Ltd
• Canada Rare Earth Corporation
• Iluka Resources Limited
• IREL (India) Limited
• Lynas Rare Earths Ltd
• Neo Performance Materials Inc
• Northern Minerals
• Shin-Etsu Chemical Co., Ltd.
• Ucore Rare Metals Inc.
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