According To 24 Chemical Research Rare Earth Market, valued at USD 8.1 billion in 2024, is forecast to grow to USD 18.6 billion by 2032, registering a strong CAGR of 10.7% during the period. This surge is primarily fueled by accelerating adoption of green energy technologies, rising production of electric vehicles (EVs), and strategic defense applications that rely heavily on high-performance magnetic and electronic materials.
Rare earth elements (REEs)—a group of 17 chemically similar metallic elements—play an indispensable role in producing permanent magnets, catalysts, batteries, and aerospace components. As global industries shift toward decarbonization and advanced materials, demand for both light and heavy rare earths continues to expand.
Top 5 Market Drivers
- Rising Demand for Green Energy Technologies
Renewable energy systems such as wind turbines and EVs depend on neodymium and dysprosium magnets, accelerating global REE consumption. - Military and Defense Applications
Strategic materials like terbium and samarium are essential in precision-guided weapons and radar systems, prompting countries to build rare earth reserves.
To know more market drivers get the free sample report: https://www.24chemicalresearch.com/download-sample/202570/global-rare-earth-market
Market Segmentation by Type
- Rare Earth Oxides
- Light Rare Earth Oxides
- Heavy Rare Earth Oxides
- Rare Earth Salts
- Chlorides
- Nitrates
- Rare Earth Metals
Rare Earth Oxides dominate the market owing to their widespread use in catalysts, ceramics, and metallurgical applications. These oxides serve as the foundational materials in refining and alloy production.
Market Segmentation by Application
- Metallurgy
- Rare Earth Permanent Magnet Materials
- Catalytic Materials
- Hydrogen Storage Materials
- Others
Among these, Rare Earth Permanent Magnet Materials represent the fastest-growing segment. Their usage in electric motors, wind turbines, and energy-efficient appliances continues to expand in line with global sustainability goals.
Market Segmentation by Element Group
Light Rare Earth Elements (LREE):
Lanthanum, Cerium, Praseodymium, Neodymium, Promethium, Samarium, Europium
Heavy Rare Earth Elements (HREE):
Gadolinium, Terbium, Dysprosium, Holmium, Erbium, Thulium, Ytterbium, Lutetium, Scandium, Yttrium
Light Rare Earth Elements dominate the market by volume due to their higher abundance and extensive use in polishing powders, catalysts, and magnetic materials. However, heavy rare earths like dysprosium and terbium are gaining strategic importance for high-temperature magnet performance.
Market Segmentation by End-Use Industry
- Electronics
- Automotive
- Energy
- Defense and Aerospace
- Chemicals and Catalysts
Electronics and automotive industries remain key consumers, supported by expanding EV production and semiconductor manufacturing. Meanwhile, defense and aerospace sectors are emerging as critical drivers as nations prioritize material independence.
Key Market Players
- China Northern Rare Earth Group High-Tech Co., Ltd. – The world’s largest REE producer with an integrated mining-to-processing value chain.
- Shenghe Resources Holding Co., Ltd. – Expanding international partnerships to secure global resource access.
- Lynas Rare Earths Ltd. – The largest non-China rare earth producer, operating refining facilities in Malaysia.
- Arafura Resources Ltd. – Developing the Nolans Project in Australia, focusing on NdPr production for EV magnets.
- Iluka Resources Ltd. – Diversifying mineral sands operations into rare earth extraction.
- Texas Mineral Resources Corp. – Leading U.S. exploration initiatives for domestic rare earth independence.
- Neo Performance Materials Inc. – Specializing in value-added rare earth products and magnet manufacturing.
Market Outlook
The rare earth market is entering a critical decade of transformation. As global industries transition toward electrification and renewable energy, demand for high-performance magnetic materials will continue to surge. While China remains the dominant supplier, increasing investments in diversified mining, refining technologies, and recycling programs are reshaping the global competitive landscape.
Over the next decade, innovation in rare earth separation, sustainable mining, and supply chain transparency will define market competitiveness. Companies that successfully integrate advanced processing technologies with environmentally responsible practices are expected to capture the strongest growth opportunities.
About 24Chemical Research
Founded in 2015, 24Chemical Research provides comprehensive insights into global chemical and materials markets. Serving over 30 Fortune 500 clients, the company specializes in:
- Plant-level capacity tracking
- Real-time price monitoring
- Techno-economic feasibility studies
With over a decade of analytical expertise, 24Chemical Research delivers actionable intelligence to help clients navigate complex industrial and policy landscapes.
International: +1 (332) 2424 294 | Asia: +91 9169162030
Website: https://www.24chemicalresearch.com/
LinkedIn: https://www.linkedin.com/company/24chemicalresearch
