Rare Earth Metals Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Rare Earth Metals Market Analysis

The global rare earth metals market generated revenue of USD 8,315.9 million in 2023, and it is expected to reach USD 15,485.4 million by 2030, progressing with a CAGR of 9.4% during 2024–2030. This can be ascribed to the increasing usage of these elements in the consumer electronics, energy, aerospace, and automobile industries.

The growth is also credited to the burgeoning usage of neodymium magnets in MRI machines, to obtain internal views of the human body without radiation. This is driven by the heavy investment in the healthcare sector by governments and top players globally.

Moreover, the various applications of these metals in defense equipment, including communication equipment, night-vision goggles, precision-guided weapons, and stealth technology, are driving their demand. Neodymium and samarium are used to create resilient magnets that can bear high temperatures for mission-critical electronic and defense applications.

Further, the increasing production of consumer durables in developing countries drives the sales of rare earth elements. For instance, in India, HP Development Company L.P. has started producing laptops under the Make in India initiative. The company has a planned vision for expanding its product portfolio in India, which will further boost the electronics industry, since HP has a major share in the country.

In addition to this, cerium is deployed in light bulbs, TVs, and ovens, while dysprosium is mixed into the alloys utilized in wind turbines, electric vehicles (EVs), and nuclear reactors. In addition, lanthanum is extensively used in digital camera lenses, including cell phone cameras. Lanthanum-based catalysts are also utilized to refine petroleum. Further, yttrium, europium, and terbium phosphors are red–green–blue phosphors deployed in several light bulbs, panels, and TVs.

Rare Earth Metals Market Trends & Drivers

Increasing Application of Semiconductors

• The world has been seeing advancements in AI, IoT, and wirelessly connected devices, which are creating a huge demand for semiconductors.
• Most of these new devices are equipped with a single system on a chip (SoC), to offer prominent levels of integration.
• Additionally, SoCs also allow the devices to work with a high-power efficiency and enhanced security, by integrating processors, memory, , sensors, power management, and connectivity components in a single unit.

Increasing Need for Catalysts Helping Market Advance

• Rare earth metals are extensively used in catalyst systems as they increase the rate of a chemical reaction without themselves undergoing any permanent chemical change, by absorbing, storing, and releasing oxygen, and stabilizing the environments in which they work.
• Some major applications of catalysts are petroleum refining, chemical processing, catalytic converters, diesel additives, and industrial pollution scrubbers.
• The key minerals used in catalyst systems are lanthanum and cerium. They are used as catalysts in automotive catalytic converters for cars and other vehicles and as fluid cracking catalysts (FCCs) in oil refineries.
• Hence, the increase in worldwide automobile sales and the rise in the stringency of the regulations around the world for vehicular emissions are driving the need for such converters.
• There are several (autocat) that transform the primary pollutants in engine exhaust gases into non-toxic compounds. This process is called ‘three-way catalysis’ because it achieves three different chemical reactions: first, oxidizing CO into non-harmful CO2​; then, oxidizing the complex unburned hydrocarbons into CO2 and water; and lastly, converting oxides of nitrogen (NOx) with CO into harmless nitrogen and CO2.

Effects on the Environment

• The negative consequence associated with rare earth metals mining on the environment is the pollution caused during their mining, affecting natural resources including water, air, and soil.
• The leakage of drilling fluids and some acidic elements used in mining can spoil water sources. Also, acid drainage harms the local aquatic environment. Rare earth mining activities can further affect deep ground waters that may supply wells and drinking water systems.
• Moreover, mining activities, such as cutting, drilling, blasting, transportation, stockpiles, and processing, cause dust and chemicals into the air, which leads to air pollution.
• Furthermore, waste elements involved in rare earth mining processes may contaminate soil, which affects local wildlife and vegetation. Also, some elements can make the soil toxic, which can lead to the end of living ecosystems in that area.
• These are the concerning issues for local authorities. Hence, it may lead to limiting the mining activities in such geographies and may act as a restraint for the growth of the rare earth metals market.

In-Depth Segmentation Analysis

Element Type Insights

• Neodymium is expected to generate around $6840 million revenue in 2030. This will mainly be because of the growing usage of neodymium magnets in hybrid electric vehicles (HEVs), aircraft, and consumer electronics, such as mobile phones, audio systems, and TVs. Moreover, neodymium is a high-strength metal that helps in reducing the size of electric motors for EVs.
• Neo magnets are also used in wind turbines, for electricity generation. As a result, they find a wide application in China due to the growing shift toward renewable sources.
• In the same vein, the U.S. and European countries are augmenting their adoption of the neo magnet technology for power generation. Moreover, with technological advancements, other elements, including praseodymium, terbium, and dysprosium, are being increasingly used in wind turbines and for e-mobility.
• Lanthanum demand will experience moderate growth during the forecast period, as it has applications in various consumer electronics and electrical appliances, such as TVs, energy-saving lamps, and fluorescent tubes.
• Moreover, it is used in the production of catalysts and as a polishing agent in various consumer products. Hence, the improving lifestyles of people around the world are propelling the sales of the metal.

During the study, we have analyzed the following element types in the report:

• Cerium
• Neodymium (Largest Category)
• Praseodymium (Fastest-Growing Category)
• Lanthanum
• Dysprosium
• Terbium
• Promethium
• Yttrium & Scandium
• Others

Application Analysis

• The magnets category held the largest share, of around 37%, in the market for rare earth metals in 2023, and it is expected to retain its dominance in the long run. This is ascribed to the high need for rare earth minerals in consumer electronics, such as sensors, speakers, and headphones.
• Cerium and dysprosium are highly magnetic and increasingly being used in manufacturing computer disks, lasers, commercial lights, turbine generators, electric motors, and energy-efficient vehicles.
• The catalysts category held the second-largest share in 2023. These products’ primary role in a catalyst is to absorb, store, and release oxygen, while also stabilizing the surroundings in which they function.
• Lanthanum and cerium are commonly utilized in catalyst systems. They are also used in the illuminated screens on electronic devices, air pollution control systems, and during the e-polishing of optical glass.
• Further, the glass and polishing category recorded the third-largest share in 2023. The most-widely used elements in glass are erbium, ytterbium, and neodymium. Additionally, cerium oxide abrasive is extensively used in fine polishing processes, such as during the fabrication of lenses, liquid crystal panels, prisms, and glass substrates for hard disks.
• Moreover, lanthanum is deployed in many high-index glasses, and, when combined with other glass materials, it ameliorates dispersion. Thus, they are used in various achromats and imaging lenses to intensify efficiency and improve image quality.

Below are the major applications in which rare earth metals play an important role:

• Catalysts
• Ceramics
• Phosphors
• Glass and Polishing
• Metallurgy
• Magnets (Largest and Fastest-Growing Category)
• Others

APAC to Grow with 9% CAGR

• The APAC market is projected to observe the highest growth rate, around 9%, during the forecast period. China, being home to the largest reserves of the major rare earth elements, is their largest producer, also accounting for a significant proportion of the world’s output.
• Moreover, the region is a major exporter of these elements. With the rise in the production of automobiles, the market continues to grow, because these minerals are used as alloys for the manufacturing of automobiles and their components.
• Furthermore, the region has the largest base for electronics production. These elements are used in smartphones, TVs, and various energy-efficient devices.
• More than half the world's mobile phones, nearly all printed circuit boards, and two-fifths of the semiconductors are currently made in China. In all, it has more than half the world's electronics manufacturing capacity. With the growing disposable income of the middle-class population, the need for consumer electronics is rising across APAC.
• North America is likely to have the second-highest growth rate over the forecast period. The growing end-use industries, surging population of tech-savvy inhabitants, snowballing production of consumer electronics, and rising usage of semiconductors due to technological advancements are the key factors responsible for the continuous rise in the demand for these metals in the region.
• These elements are used to produce AI-driven systems, smart LED lamps, smartphones, and a host of other products.
• In addition, the production of green-energy products, such as EVs, has been increasing across the region, and these elements are important for many of their components.
• The European market is expected to witness the third-fastest growth during the forecast period. This is majorly because European countries account for significant shares of the global rare earth element imports.
• Further, companies across industries are focusing more on green-energy alternatives, which have a minimal effect on the environment and high efficiency, to gain market share.
• Thus, there is an increase in the demand for green-energy products and energy-efficient consumer electronics, which is driving the growth of the market.

Further, regions and countries analyzed for this report include:

• Asia-Pacific (APAC) (Largest and Fastest-Growing Regional Market)
  • China (Larger and Faster-Growing Country Market)
  • Japan
  • India
  • South Korea
  • Rest of APAC
• Europe
  • Germany (Largest Country Market)
  • UK (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• North America
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Latin America, Middle East, and Africa (LAMEA)
  • Brazil (Largest Country Market)
  • Argentina
  • Saudi Arabia
  • South Africa (Fastest-Growing Country Market)
  • Rest of LAMEA

Rare Earth Metals Industry News

• Neo Performance Materials and Hudson Resources signed an agreement for The Sarfartoq Rare Earth Element Project in Greenland. The purpose of the agreement is for Neo to diversify its sources of rare earth metal ores, to gain raw materials for its metal refining facility in Estonia.
• ASM’s first high-purity critical metals plant opened in South Korea. This move offers an alternative source of the critical metals needed to meet the forecast global demand for ASM. The plant will produce critical metals and alloys with an initial focus on NdFeB and titanium metal alloys.
• Ucore announced the successful conclusions of a multi-phase, third-party, independent technical review (Independent Expert Evaluation) of RapidSX rare earth separation technology.
• Iluka Resources Limited committed to building Australia's first rare earth metals refinery after lining up $749 million (AUD 1 billion) in cheap debt from the government, to diversify critical minerals supply away from China. The new plant is key to a push by the U.S. and allies, such as Australia and Japan, to produce new sources of a range of critical minerals, including REE.