The global rare earth elements market was valued at USD 3.39 billion in 2023 and is projected to grow from USD 3.74 billion in 2024 to USD 8.14 billion by 2032, registering a compound annual growth rate (CAGR) of 10.2% during the forecast period from 2025 to 2032. The global rare earth elements market size is projected to experience a period of sustained growth owing to the steadily rising adoption of electric vehicles (EVs) around the world, observes Fortune Business Insights™ in its report, titled “Rare Earth Elements Market Size, Share & Industry Analysis, By Type (Lanthanum, Cerium, Prasaedynium, Samaerium, Europium, Other), By Application (Magnets, Metals, Alloys, Polishing agents, Additives, Catalysts, Phosphors, Other) and Regional Forecast, 2025-2032”.

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Rare Earth Elements Market Segmentation:

By Type:

The market is segmented into lanthanum, cerium, neodymium, praseodymium, samarium, europium, and others. Neodymium dominated the market in 2023, driven by its use in electric vehicle batteries and permanent magnets. Cerium is growing due to demand from the automotive sector, especially in catalytic converters. Praseodymium is gaining traction in aerospace for high-strength alloys. Lanthanum is witnessing growth from battery applications, particularly in nickel-metal hydride batteries. Samarium demand is increasing due to its use in permanent magnets for hybrid vehicles.

By Application:

Applications include magnets, metallurgy, batteries, polishing, glass & ceramics, catalysts, phosphors, and others. Magnets held the largest market share in 2023, with strong demand from electronics, motors, and sensors. The battery segment is expected to grow at the fastest pace, driven by the rising adoption of electric vehicles and advancements in energy storage technologies, especially in the U.S., China, and Europe.

Regional Insights

Abundant Reserves in China & Australia to Propel the Asia Pacific Market

Among regions, Asia Pacific is expected to dominate the rare earth elements market share in the near future on account of the abundant availability of these elements in China, Japan, and Australia. Moreover, with countries such as India and Myanmar investing in rare earth mining projects, the scope of the market in this region is set to widen in the upcoming years.

The market in North America is set enjoy lucrative prospects owing to the booming demand for electric cars in the region. In Europe, on the other hand, the main growth driver will be the region’s gradual shift towards renewables and clean energy production technologies.

Market Driver

Increasing Production of Rare Earths outside China to Augment Market Potential

One of the factors that potentially accelerate the rare earth elements market growth in the coming years is the increasing production of these elements in countries other than China. In the US, for example, rare earth production rose from 18,000 MT in 2018 to 26,000 MT in 2019, according to the US Geological Survey (USGS), with the main supply of these elements from the Mountain Pass mine in California. Australia, to take another example, houses the sixth largest-known rare earth reserve in the world in Mouth Weld in Western Australia. The USGS notes that rare earth element production in the country has risen impressively in the past few years, standing at 21,000 MT in 2019. Another key country is India, which, according to the USGS, is producing far below its potential. Being home to 35% of the total global beach sand mineral deposits, the USGS believes that India can become a significant player in the rare earths industry.

Competitive Landscape-

Key Players Focus on Acquisitions and Signing Agreements to Intensify Competition

The global market houses numerous companies that are currently focusing on acquiring local organizations and signing new agreements with government bodies to compete with their rivals. Below is one of the latest industry developments:

• January 2021: Lynas Rare Earths Limited and the U.S. Government signed an agreement to construct a Light Rare Earths separation plant in Texas through Lynas USA LLC, a wholly owned subsidiary. The new plant is estimated to produce rare earth elements at around 5,000 tonnes per annum.

A list of renowned rare earth elements providers operating in the global market: