Global Rare Earth Elements Market Size, Share, and COVID-19 Impact Analysis, By Type (Lanthanum, Cerium, Neodymium, Praseodymium, Samarium, Europium, and Others), By Application (Magnets, Metallurgy, Batteries, Polishing Agent, Glass and Ceramics, Catalysts, Phosphors, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2025 - 2035

Global Rare Earth Elements Market Size Insights Forecasts to 2035

• The Global Rare Earth Elements Market Size Was Estimated at USD 3.88 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 9.40% from 2025 to 2035
• The Worldwide Rare Earth Elements Market Size is Expected to Reach USD 10.42 Billion by 2035
• North America is Expected to Grow the fastest during the forecast period.

The Global Rare Earth Elements Market Size was worth around USD 3.88 Billion in 2024 and is predicted to grow to around USD 10.42 Billion by 2035 with a Compound Annual Growth Rate (CAGR) of 9.40% from 2025 and 2035. The market for rare earth elements provides opportunities in the areas of advanced electronics, strategic defense applications, supply chain diversification, recycling technologies, renewable energy expansion, electric vehicle growth, and geopolitical investments for sustainable resource development.  

Market Overview

The global industry that deals with the extraction, processing, and trading of 17 chemically related metallic elements, such as lanthanides, scandium, and yttrium, is known as the rare earth elements (REE) market. The electronics, renewable energy, automotive, and defense industries depend heavily on these elements due to their special magnetic, luminous, and catalytic qualities. The market for rare earth elements (REEs) is mostly concentrated on strategic sectors, sustainable energy solutions, and high-tech applications.

Rare earth element use is being driven by a number of factors, including the growing demand for consumer durables like tablets, laptops, and smartphones. The primary factors driving the worldwide rare earth elements market are the expansion of the wind energy industry and the growing demand for electric vehicles (EVs) as part of the green energy transition. The growing manufacturing of consumer durables in developing nations will increase battery consumption, which can propel the expansion of the rare earth elements market.  

Report Coverage

This research report categorizes the rare earth elements market based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the rare earth elements market. Recent market developments and competitive strategies such as expansion, type launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the rare earth elements market. 

Driving Factors

The growing need for elements including lanthanum, samarium, europium, and others for use in lasers, optical electronics, batteries, and screens will support the rare earth elements market's expansion. The product demand is expected to be driven by the growing need for catalysts, additives, ceramic products, and metal products from a variety of end-use sectors, including chemical, oil and gas, automotive, and electronics. The rare earth elements market demand for magnets is mostly driven by consumers' attraction to cutting-edge devices and goods. The market is expected to be driven by the automobile industry's increasing need for permanent magnets and catalysts.  

Restraining Factors

Price volatility, supply chain interruptions, geopolitical unrest, environmental regulations, high extraction costs, a lack of recycling infrastructure, and monopoly concerns are some of the factors that restrict the market for rare earth elements and affect their availability, sustainability, and market stability globally.

Market Segmentation

The rare earth elements market share is classified into type and application.   

• The neodymium segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period. 

Based on the type, the rare earth elements market is divided into lanthanum, cerium, neodymium, praseodymium, samarium, europium, and others. Among these, the neodymium segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period. The rise of the neodymium category is being driven by the increasing demand from producers of electric and hybrid vehicles. Batteries for electric cars are made using permanent magnets based on neodymium.  

• The magnets segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period.

Based on the application, the rare earth elements market is divided into magnets, metallurgy, batteries, polishing agent, glass and ceramics, catalysts, phosphors, and others. Among these, the magnets segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period. The strong demand from producers of servo motors, portable consumer electronics, hard drives, sensors, speakers, and headphones is linked to the magnets market.   

Regional Segment Analysis of the Rare Earth Elements Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia Pacific is anticipated to hold the largest share of the rare earth elements market over the predicted timeframe.

Asia Pacific is anticipated to hold the largest share of the rare earth elements market over the predicted timeframe. The Asia Pacific area is recognized for having significant manufacturers of consumer electronics. The growing economy, rising disposable income, and consequent rise in the region's manufacturing of cars, electronics, and wind power generators are the main factors driving the Asia Pacific rare earth elements market. China, which is regarded as the manufacturing center for several goods needed in the consumer electronics and automotive industries, is making a substantial contribution to the expansion of the regional market.

North America is expected to grow at a rapid CAGR in the rare earth elements market during the forecast period. North America's market for rare earth elements is leading the way in continuous research and development for REE alternatives. Governments and companies in the region are investing more in recycling technologies, local sourcing, and strategic partnerships to reduce reliance on imports and guarantee dependable supply chains for these vital commodities. Plug-in EVs, which are provided by major manufacturers including Tesla, Chevy, Nissan, Ford, Audi, and BMW, among others, have been quite popular in the United States.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the rare earth elements market, along with a comparative evaluation primarily based on their type of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Hitachi Metals Ltd.
• Shin-Etsu Chemical Co., Ltd.
• Arafura Resources Ltd
• Indian Rare Earth Limited
• Alkane Resources Ltd
• Greenland Minerals Ltd
• Iluka Resources Limited
• Lynas Corporation Ltd
• Avalon Advanced Materials Inc.
• Rare Element Resources Ltd.
• Ucore Rare Metals Inc.
• Northern Minerals Ltd
• China Northern Rare Earth (Group) High-Tech Co., Ltd.
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs) 

Recent Development

• In April 2024, MP Materials, a U.S.-based company, received USD 58.5 million to advance the development of the nation's first integrated plant for the production of rare earth magnets. By late 2025, commercial production is anticipated to start in the Forth Worth, Texas, facility.  
• In July 2023, USA Rare Earth announced that it planned to spend USD 100 million to establish a neodymium magnet production facility in Stillwater, Oklahoma, capable of producing 1,200 tons annually. It is anticipated that production will start in early 2026 and increase to 4,800 tons annually.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the rare earth elements market based on the below-mentioned segments: 

Global Rare Earth Elements Market, By Type

• Lanthanum
• Cerium
• Neodymium
• Praseodymium
• Samarium
• Europium
• Others

Global Rare Earth Elements Market, By Application

• Magnets
• Metallurgy
• Batteries
• Polishing Agent
• Glass and Ceramics
• Catalysts
• Phosphors
• Others

Global Rare Earth Elements Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa