The rare earth metals market consists of sales by entities (organizations, sole traders and partnerships) of rare earth metals are widely used in modern industrial and technological applications, particularly in electronics, renewable energy systems, automotive manufacturing, aerospace, telecommunications and defense technologies. They are used to produce high-performance magnets, phosphors, catalysts, alloys and specialized glass and ceramics. Although these metals are relatively abundant in the Earth's crust, that are rarely found in economically concentrated deposits, making their extraction and processing complex and resource intensive.
The global rare earth metals market was valued at $7,819.6 million in 2020 which grew till 2025 at a compound annual growth rate (CAGR) of more than 7.00%.
Increasing Adoption Of Electric Vehicles
The increasing adoption of electric vehicles supported the growth of the rare earth metals market in the historic period. Rare earth elements such as neodymium, praseodymium and dysprosium are widely used in the production of high-performance permanent magnets that power electric vehicle motors. These magnets enhance motor efficiency, durability and power density, making them essential for modern EV technologies. As governments and automotive manufacturers focused on reducing carbon emissions and promoting sustainable transportation, the demand for electric vehicles increased significantly. This rising EV production boosted the need for rare earth materials used in motors, batteries and electronic components. For instance, in September 2025, according to the International Council on Clean Transportation, a US-based non-profit organization, in the first half of 2025, global electric vehicle sales surpassed 9 million units, accounting for 23% of all new light-duty vehicle sales worldwide, a notable rise from 19% recorded for the entire year of 2024. Therefore, the increasing adoption of electric vehicles drove the growth of the rare earth metals market.
Capacity Expansion Supporting Critical Material Supply Security
Major companies operating in the rare earth metals market are focusing on expanding production capacities and establishing advanced processing facilities to strengthen regional supply chains and support the growing demand for rare earth materials in electric vehicles, renewable energy systems, electronics, and defense applications. For instance, in April 2025, Solvay, a Belgium-based chemicals company, has inaugurated a new rare earth production line for permanent magnets at its La Rochelle facility in France, marking a major step in strengthening Europe's rare earth supply chain. The expansion allows the company to begin commercial production of rare earth materials used in permanent magnets for electric vehicles, renewable energy systems, electronics, and defense applications. The facility is the largest plant outside China capable of separating all rare earth elements and supports the objectives of the EU's Critical Raw Materials Act. Through this development, Solvay aims to help meet around 30% of Europe's rare earth demand by 2030 while also improving sustainability by reducing carbon emissions and water consumption in its production processes.
The global rare earth metals market is highly concentrated, with large players operating in the market. The top 10 competitors in the market made up 54.82% of the total market in 2024.
Rare Earth Metals Global Market Opportunities And Strategies To 2035 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global rare earth metals market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for rare earth metals? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The rare earth metals market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider rare earth metals market; and compares it with other markets.
The report covers the following chapters
- Introduction And Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segments, key products, supply chain and market attractiveness scoring and analysis.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future technologies and developments in the market.
- Growth Analysis And Strategic Analysis Framework- Analysis on PESTEL, end use industries, market growth rate, global historic (2020-2025) and forecast (2025-2030, 2035F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable market (TAM).
- Regional And Country Analysis Historic (2020-2025) and forecast (2025-2030, 2035F) market values and growth and market share comparison by region and country.
- Market Segmentation Contains the market values (2020-2025) (2025-2030, 2035F) and analysis for each segment by product type, by metal type and by application in the market. Historic (2020-2025) and forecast (2025-2030) and (2030-2035) market values and growth and market share comparison by region market
- Regional Market Size And Growth Regional market size (2025), historic (2020-2025) and forecast (2025-2030, 2035F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies Details on the startups, company profiles of other major and innovative companies in the market.
- Competitive Benchmarking Briefs on the financials comparison between major players in the market.
- Competitive Dashboard Briefs on competitive dashboard of major players.
- Key Mergers And Acquisitions Information on recent mergers and acquisitions in the market covered in the report. This section gives key financial details of mergers and acquisitions, which have shaped the market in recent years.
- Recent Developments Information on recent developments in the market covered in the report.
- Market Opportunities And Strategies Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations This section includes recommendations for rare earth metals in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Product Type: Light Rare Earth Metals; Heavy Earth Metals; Other Product Types
- 2) By Metal Type: Neodymium; Yttrium; Dysprosium; Terbium; Europium; Cerium; Lanthanum; Other Metal Types
- 3) By Application: Catalysts; Ceramics Or Glass; Glass Polishing; Metallurgy; Other Applications
- Companies Mentioned: China Northern Rare Earth Group; Shenghe Resources Holding Co. Ltd.; Lynas Rare Earths Ltd.; Neo Performance Materials Inc.; MP Materials Corp.
- Countries: China; Australia; India; Indonesia; Japan; South Korea; Taiwan; USA; Canada; Brazil; France; Germany; UK; Italy; Spain; Russia
- Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; rare earth metals indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.