Rare Earth Metals Market Size

Rare Earth Metals Market Size

The global rare earth metals market was valued at USD 15.3 billion in 2023 and is estimated to grow at a CAGR of over 10.8% CAGR from 2024 to 2032. Due to the growing product demand from emerging technologies such as hybrid vehicles and electric vehicles coupled with the propelling use in magnet and optical instrument application.

Rare earth metals are a class of elements found together in the earth crust that possesses similar physical and chemical properties. These elements extracted can be extracted and processed in their ore forms and consist of both hard and light categories. Praseodymium and samarium fall in the light-weight category and readily found as compared to the heavy metals such as terbium, holmium, gadolinium, europium, thulium, dysprosium, erbium, lutetium, and ytterbium.
 

Neodymium is majorly used producing permanent magnets used in electrical and hybrid vehicles. The growing implications to reduce the co₂ emissions coupled with the presence of stringent regulations has propelled the adoption of electrical vehicles in turn contributing to the overall market share.
 

The increasing demand for electric vehicles (EVs) significantly drives the rare earth metal market, as these vehicles rely heavily on rare earth elements for batteries, magnets, and electric motors. As EV adoption rises globally, so does the need for these critical materials.
 

The expansion of renewable energy technologies, such as wind turbines and solar panels, also fuels demand for rare earth metals. Components like permanent magnets used in wind turbines require substantial quantities of rare earth elements, creating a robust market for these materials.
 

Advancements in consumer electronics further contribute to the growth of the rare earth metal market. As devices become more sophisticated, incorporating features like high-performance displays and compact components, the need for rare earth metals increases. This trend is evident in smartphones, tablets, and other gadgets that utilize these materials for enhanced functionality and efficiency, solidifying their importance in modern technology and energy solutions.