U.S. Rare Earth Elements Market Size & Share Analysis - Key Trends, Future Opportunities, Growth Strategies, and Forecasts (2025

Description

The U.S. rare earth elements (REE) market was valued at USD 85.5 million in 2024 and is set to grow at a compound annual growth rate (CAGR) of 9.5%, reaching USD 174.8 million by 2032. This expansion is driven by the increasing demand for rare earth elements in key industries such as electric vehicles (EVs), renewable energy, and defense. These elements are crucial in the production of permanent magnets, which are used in EV motors, wind turbines, and precision-guided military weapons.

The U.S. government's support through initiatives such as the Inflation Reduction Act and the Defense Production Act, which fund critical mineral supply chains, is accelerating the growth of the market. Additionally, investments in refining capacity and technological advancements are boosting the domestic production of rare earth metals. Notably, MP Materials is establishing a rare earth metal and magnet factory in Texas, supported by a USD 35-million contract from the U.S. Department of Defense.

Key Insights

Neodymium, the largest category in the U.S. REE market, accounted for 35% of the market share in 2024. Its primary applications include electric vehicle motors, wind turbine generators, and hard drives, driven by the global shift towards renewable energy sources and clean technologies.

Praseodymium, expected to grow at the highest CAGR of 10.5%, is increasingly used alongside neodymium in magnets to enhance their durability and performance. This combination is especially critical for the EV and renewable energy sectors.

The magnets application category held the largest market share (40%) in 2024 and will also grow at the highest CAGR of 10.8%. Rare earth magnets are essential in various industries, including automotive, aerospace, electronics, and renewable energy, all of which are key drivers of demand.

Recycling of rare earth elements is gaining traction as a key trend. Efforts to recycle rare earth metals from waste electronics and batteries are reducing the environmental impact associated with mining. Modern extraction technologies are making this process more efficient, helping to mitigate the environmental effects of mining.

The Western U.S. holds the largest market share (45%) due to its substantial rare earth mining activities, particularly in California and Nevada, where major mines such as Mountain Pass Mines operate. This region is a hub for industries reliant on rare earth materials, including electronics, aerospace, and renewable energy.

The Southern U.S. is projected to grow at the highest CAGR of 11%, with increased demand from manufacturing plants and high-tech sectors in Texas and Florida, along with a growing interest in clean energy products.

U.S. Department of Defense investments are a major growth driver, as companies like Lynas USA and Noveon Magnetics receive multi-million dollar contracts to establish production capabilities for rare earth materials and magnets essential for defense and industrial applications.

The market is fragmented, with numerous players involved in various stages of the supply chain. Key companies such as MP Materials Corp., Lynas Rare Earths Ltd., and Neo Performance Materials are expanding their operational capabilities to meet the growing demand for rare earth elements.

In March 2025, American Resources Corporation expanded its capacity to refine critical minerals, including rare earth elements, with the commissioning of a new SSMB production unit. Additionally, MP Materials received a USD 58.5-million award to accelerate the construction of its rare earth magnet factory.

Product Code: 13518

Chapter 1. Research Scope

1.1. Research Objectives
1.2. Market Definition
1.3. Analysis Period
1.4. Market Size Breakdown by Segments
- 1.4.1. Market Size Breakdown, by Element Type
- 1.4.2. Market Size Breakdown, by Application
1.5. Market Data Reporting Unit
- 1.5.1. Revenue
1.6. Key Stakeholders

Chapter 2. Research Methodology

2.1. Secondary Research
- 2.1.1. Paid
- 2.1.2. Unpaid
- 2.1.3. P&S Intelligence Database
2.2. Primary Research
2.3. Market Size Estimation
2.4. Data Triangulation
2.5. Currency Conversion Rates
2.6. Assumptions for the Study
2.7. Notes and Caveats

Chapter 3. Executive Summary

Chapter 4. Market Indicators

Chapter 5. Industry Outlook

5.1. Industry Background
5.2. Market Dynamics
- 5.2.1. Trends
- 5.2.2. Drivers
- 5.2.3. Restraints/Challenges
- 5.2.4. Emerging Economies and Key Opportunities
- 5.2.5. Impact Analysis of Drivers/Restraints
5.3. Impact of COVID-19
5.4. Sociopolitical Impact
5.5. Porter's Five Forces Analysis
- 5.5.1. Bargaining Power of Buyers
- 5.5.2. Bargaining Power of Suppliers
- 5.5.3. Threat of New Entrants
- 5.5.4. Intensity of Rivalry
- 5.5.5. Threat of Substitutes
5.6. Innovation and Technology Trends
5.7. Economic and Regulatory Impact
5.8. Market Entry Strategies

Chapter 6. Competitive Landscape

6.1. List of Market Players and their Offerings
6.2. Market Share of Key Players (2024)
6.3. Competitive Benchmarking of Key Players
6.4. Product Benchmarking of Key Players
6.5. Recent Strategic Developments by Key Players
6.6. Company Leadership Matrix

Chapter 7. U.S. Market

7.1. Overview
7.2. Market Revenue, by Element Type (2019-2032)
7.3. Market Revenue, by Application (2019-2032)
7.4. Market Revenue, by Country (2019-2032)

Chapter 8. Northeast Market

8.1. Overview
8.2. Economic Indicators
8.3. Demographics and Population Insights
8.4. Regional Hotspots
8.5. Growth Drivers
8.6. Challenges and Barriers
8.7. Competitive Strategies
8.8. Emerging Players
8.9. Import/Export Policies
8.10. Compliance Requirements
8.11. Emerging Investment Areas
8.12. Major Ongoing Projects
8.13. Market Size and Forecast
- 8.13.1. Market Revenue, by Element Type (2019-2032)
- 8.13.2. Market Revenue, by Application (2019-2032)

Chapter 9. Midwest Market

9.1. Overview
9.2. Economic Indicators
9.3. Demographics and Population Insights
9.4. Regional Hotspots
9.5. Growth Drivers
9.6. Challenges and Barriers
9.7. Competitive Strategies
9.8. Emerging Players
9.9. Import/Export Policies
9.10. Compliance Requirements
9.11. Emerging Investment Areas
9.12. Major Ongoing Projects
9.13. Market Size and Forecast
- 9.13.1. Market Revenue, by Element Type (2019-2032)
- 9.13.2. Market Revenue, by Application (2019-2032)

Chapter 10. West Market

10.1. Overview
10.2. Economic Indicators
10.3. Demographics and Population Insights
10.4. Regional Hotspots
10.5. Growth Drivers
10.6. Challenges and Barriers
10.7. Competitive Strategies
10.8. Emerging Players
10.9. Import/Export Policies
10.10. Compliance Requirements
10.11. Emerging Investment Areas
10.12. Major Ongoing Projects
10.13. Market Size and Forecast
- 10.13.1. Market Revenue, by Element Type (2019-2032)
- 10.13.2. Market Revenue, by Application (2019-2032)

Chapter 11. South Market

11.1. Overview
11.2. Economic Indicators
11.3. Demographics and Population Insights
11.4. Regional Hotspots
11.5. Growth Drivers
11.6. Challenges and Barriers
11.7. Competitive Strategies
11.8. Emerging Players
11.9. Import/Export Policies
11.10. Compliance Requirements
11.11. Emerging Investment Areas
11.12. Major Ongoing Projects
11.13. Market Size and Forecast
- 11.13.1. Market Revenue, by Element Type (2019-2032)
- 11.13.2. Market Revenue, by Application (2019-2032)

Chapter 12. Company Profiles

Chapter 13. Appendix

13.1. Sources and References
13.2. Related Reports

U.S. Rare Earth Elements Market Size & Share Analysis - Key Trends, Future Opportunities, Growth Strategies, and Forecasts (2025 - 2032)