The market
Market Overview
Growth Trends and Supply Challenges
The global rare earth elements market, valued at USD 3.95 billion in 2024, is expected to grow at a CAGR of 8.6%, reaching USD 6.28 billion by 2030. Another estimate projects growth to USD 34.02 billion by 2037. The surge is driven by rising demand in electric vehicles, wind turbines, and advanced electronics. China dominates with 69% of global production, while the U.S. holds 12%. Recent export restrictions by China on elements like samarium are prompting countries to secure alternative supply chains and boost domestic production.
Applications Driving Demand
Key Uses in Technology and Industry
Rare earth elements like neodymium and praseodymium are critical for high-performance magnets used in electric vehicle motors, wind turbines, and consumer electronics such as smartphones. Dysprosium enhances magnet durability in aerospace applications, while gadolinium is essential for medical imaging like MRI scans. Global production hit 390,000 metric tons in 2024, a sharp rise from 2017 levels. However, the environmental impact of mining, including radioactive waste, is pushing the industry toward greener extraction methods and recycling innovations.
Future Outlook
Opportunities and Risks Ahead
Demand for rare earths, particularly neodymium-based magnets, is projected to triple over the next decade, while global production may only double, potentially causing supply shortages and price volatility. The U.S. is ramping up efforts, with MP Materials securing USD 58.5 million to build a rare earth magnet facility in Texas by late 2025. Australia’s Lynas Rare Earths targets 12,000 metric tons of NdPr annually by the end of 2025. Recycling initiatives, like those from Phoenix Tailings, are scaling up, but China’s control over heavy REEs like dysprosium and terbium continues to challenge market stability.
