Rare Earth Metals Market to Reach USD 15.8 Billion by 2032

According to analysts at Vantage Market Research, the Global Rare Earth Metals Market size is worth USD 5.5 Billion in 2023 and is projected to achieve USD 15.8 Billion by 2032, growing at a CAGR (Compound Annual Growth Rate) of 12.45% from 2024 to 2032. The Rare Earth Metals Market is experiencing rapid growth driven by its crucial role in high-tech applications and the increasing demand for sustainable energy solutions.

Industry Overview

The Rare Earth Metals market is driven by the rising demand for smartphones, tablets, and laptops. This demand is especially high in developing nations, where development is anticipated to be fueled by several government-led digitization projects, fast industrialization, and an increase in building activity. Furthermore, the growing popularity of electric vehicles (EVs) in the US, UK, and Germany is probably going to increase demand for rare earth minerals even more. The use of these materials will rise in parallel with the shift towards non-conventional energy sources, which is being accelerated by stricter controls on carbon emissions and increased environmental concerns.

Asia Pacific led the market with market share of 72.2% due to strong focus on developing high-tech industries, including electronics, automotive, and renewable energy sectors, increases the demand for rare earth metals essential for various applications. Asia Pacific's leading position in the industry is further supported by strategic government initiatives and spending on strengthening export and production capabilities. The dominance is fueled by growing investments in the healthcare industry and a growth in ceramic demand, which is anticipated to cause a discernible increase in the region's use of rare earth elements. 

Key Takeaway from the Report

• By Type, Neodymium dominated the market in 2023 with market share of 68.5% because of its critical role in the production of high-performance permanent magnets
• Among various Application, Permanent Magnets segment accounted for the largest market share of 32.2% in the market for 2023 owing to its role in numerous high-tech and industrial applications
• In 2023, Asia Pacific led the market, capturing 72.2% market share due to the significant production capabilities and substantial reserves of rare earth elements, particularly in China, which remains the world's largest producer
• The North America region is expected to grow at significant CAGR projected throughout the forecast period

Top Companies

• China Rare Earth Holdings Limited
• Avalon Advanced Materials Inc.
• Bataou HEFA Rare Earth Co. Ltd
• Canada Rare Earth Corporation
• Northern Minerals Limited
• MP Materials
• Shenghe Resources Holding Co., Ltd.
• Bechtel Mining and Metals
• Lynas Rare Earths Ltd.
• Australian Strategic Materials Ltd.
• Arafura Rare Earths

Latest News

Australian Strategic Materials (ASM) Partners with Bechtel Mining and Metals for Dubbo Project

• March 2024: Australian Strategic Materials (ASM) entered a strategic partnership with global engineering firm Bechtel Mining and Metals, Inc. (Bechtel) for its Dubbo Project in New South Wales (NSW). Bechtel will deliver Front-End Engineering Design (FEED) services, a key step toward making a final investment decision. This collaboration enhances ASM's prospects for securing new funding, including from a US government entity.

Shenghe Resources to Acquire Shares in Vital Metals to Expand Rare Earth Resource Base

• 2023: Shenghe Resources Holding Co., Ltd announced its intention to acquire shares in Vital Metals, an Australian company listed on the Australian Securities Exchange (ASX). This acquisition is intended to support the development of Vital Metals' Nechalacho rare earth project in Canada and the Wigu Hill rare earth project in Tanzania, while also strengthening Shenghe's global business strategy by increasing its rare earth resource base.

ASM and USA Rare Earth Sign Five-Year Metal Sales and Tolling Agreement

• August 2023: Australian Strategic Materials (ASM) signed a five-year metal sales and tolling framework agreement with USA Rare Earth, LLC (USARE). This agreement covers the supply of neodymium iron boron (NdFeB) alloy from ASM to USARE.

ASM, Blackstone, and Vietnam Rare Earths Collaborate on Comprehensive Rare Earth Industry Development

• July 2023: ASM entered a non-binding Memorandum of Understanding (MOU) with Blackstone Minerals Limited (Blackstone) and Vietnam Rare Earths Company (VTRE). The MOU aims to develop a comprehensive rare earth industry in Vietnam, encompassing everything from mining to the production of finished products.