Rare Earth Elements Market Size, Share, Trends, Key Players, and Forecast 2025-2033
- Rahul Pal
- Jan 21
- 4 min read
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. The market is expected to grow at a CAGR of 12.83% during the forecast period 2025-2033. Growth is driven by demand for clean energy technologies and high consumer electronics usage, with China holding a dominant share of over 58.3% in 2024.
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: USD 12.44 Billion in 2024
CAGR: 12.83% from 2025 to 2033
Forecast Period: 2025-2033
China dominated the market with a 58.3% share in 2024.
Magnets accounted for the highest revenue share of 31.2%, driven by applications in electric vehicles, wind turbines, and consumer electronics.
The 2022 price surge due to supply shortages and geopolitical tensions bolstered revenues in 2022 and 2023.
Rising demand for permanent magnets and catalysts in the automotive sector supports market expansion.
The U.S. is advancing with investments and initiatives to reduce reliance on Chinese imports, which currently account for 83.20% of its supply.
Sample Request Link: https://www.imarcgroup.com/rare-earth-industry/requestsample
Market Growth Factors
The rising demand for clean energy technologies strongly drives the rare earth elements market. These elements are essential for manufacturing permanent magnets used in wind turbines and electric vehicle motors, both expanding rapidly owing to global sustainability goals. Research indicates dysprosium demand might rise by 2,600% and neodymium by 700% over the next 25 years. Governments are pushing renewable energy adoption, increasing the necessity for high-performance materials such as neodymium and dysprosium.
Battery and energy storage advancements further fuel rare earth element usage by improving efficiency and lifespan of next-generation power systems. The U.S. market also advances through government-backed initiatives, including over USD 28 million in Department of Energy investments for rare earth element processing projects, enhancing domestic capabilities and strategic partnerships to diversify resources.
The automotive industry's growth, especially electric vehicles, increases the use of magnets and catalysts based on rare earth elements. The global stock of electric cars exceeded five million in 2018, reflecting a 63% increase from 2017, escalating demand for permanent magnets in battery production that reduce CO2 emissions. Additionally, nuclear energy production involving gadolinium and aircraft engine alloys using praseodymium contribute to market growth. Consumer electronics adoption, particularly in the Asia-Pacific, also strengthens market prices as elements like lanthanum, cerium, and praseodymium see increasing applications in TVs and smart devices.
Market Segmentation
Analysis by Application:
Magnets: Account for 31.2% revenue share, vital in electric vehicles, wind turbines, and consumer electronics. Permanent magnets made from neodymium, praseodymium, and dysprosium improve efficiency and durability in clean energy and industrial automation.
NiMH Batteries
Auto Catalysts
Diesel Engines
Fluid Cracking Catalyst
Phosphers
Glass
Polishing Powders
Others
Regional Insights
China dominates the rare earth elements market with a 58.3% share in 2024, underpinned by vast reserves, advanced mining infrastructure, and sophisticated refining capabilities. The country benefits from an integrated supply chain and government policies including export controls and production quotas. China's investments in research and development also improve extraction efficiency. High domestic demand from electronics, electric vehicles, and renewable energy sectors consolidates its market leadership.
Recent Developments & News
May 2025: The U.S. allocated over USD 439 Million through a bipartisan Defense Department effort under the Defense Production Act to build a domestic rare earth supply chain, reducing import reliance.
April 2025: Canada’s Cyclic Materials announced a USD 20 Million rare-earth recycling plant in Mesa, Arizona, processing scrap from EV motors and hard drives to stabilize supply.
December 2024: Defense Metals released its Wicheeda Rare Earth Element Project Pre-feasibility Study, prepared by Hatch Ltd. and others, with price projections from Argus Media.
August 2024: University of Wyoming’s Blockchain Center partnered with ClimateChain to track rare earth elements supply chain for sustainability and efficiency improvements.
April 2024: Saskatchewan Research Council entered a five-year agreement with Vietnam’s Hung Thinh Group to supply 3,000 tons of rare earth carbonate annually, enhancing global trade.
April 2024: MP Materials secured USD 58.5 Million to advance construction of the first integrated rare earth magnet manufacturing facility in the U.S., located in Fort Worth, Texas, with production expected by late 2025.
March 2024: Australian Strategic Materials partnered with Bechtel for the Dubbo Project, boosting funding opportunities and signing a five-year supply agreement with USA Rare Earth.
January 2024: Kazakhstan announced collaboration to develop 15 rare earth deposits, capitalizing on resources for electronics and clean energy applications.
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.
If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.
About Us
IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
Contact Us
IMARC Group,
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
Tel No: (D) +91 120 433 0800
United States: +1-201971-6302
Comments