Rare Earth Metals Market Analysis APAC, North America, Europe, Middle East and Africa, South America - China, Vietnam, US, Japan, India - Size and Forecast 2024-2028

Rare Earth Metals Market Size 2024-2028 

The rare earth metals market size is projected to increase by USD 6.32 billion at a CAGR of 9.59% between 2023 and 2028. Market growth is driven by the growing demand for electronic appliances and personal equipment, particularly in the APAC region. The emergence of new production capacities further fuels market expansion. As consumer preferences and technological advancements in permanent magnets evolve, the market is poised for significant growth.

What will be the Size of the Market During the Forecast Period?

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Market Segment 

Type Insights

The permanent magnets segment is estimated to witness significant growth during the forecast period. Major rare earth metals used for making permanent magnets are neodymium, praseodymium, dysprosium, gadolinium, terbium, and samarium. These magnets are widely used in military technologies, including precision-guided missiles and bombs in aircraft and warships, because of their high thermal stability. Permanent magnets are used in magnetic catches of devices such as refrigerators, electric motors, anti-lock brakes, electric guitars, loudspeakers, and holding devices. Neodymium-iron-boron (NdFeB) magnets also find wide application in consumer electronics, automotive, air-conditioners, and electric vehicles. China is a leading consumer and supplier of NdFeB magnets and is a key exporter of these magnets. Rare earth magnets are preferred in various applications such as audio components, video components, automobiles, military gear, and communication systems.

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The permanent magnets were the largest segment and was valued at USD 2.14 billion in 2018. These metals are lightweight and have high strength. High demand for consumer electronics such as cellular phones, computers, and accessories is increasing demand in this segment. Rare earth metals are often compounded with various other elements in these applications. Their extraction process is often energy-intensive and has an impact on the environment. This poses a challenge to their use in this segment and encourages the search for alternatives. Another emerging application of permanent magnets is magnetic refrigeration.

Moreover, the magneto-calorific applications, which involve temperature control through magnetic field exposure, are widely being employed to attain extremely low temperatures that are often unattainable through gas compression refrigeration. Praseodymium-nickel alloys and gadolinium alloys are found to be capable of attaining temperatures close to absolute zero. Technological breakthroughs in this segment are expected to revolutionize the residential, commercial, automotive, air-conditioning, and refrigeration industries. A key feature of this technology is that it does not require flammable and toxic refrigerants. Besides being efficient, this technology does not pose any harm to the ozone layer like conventional refrigerants.

Regional Analysis

APAC is estimated to contribute 73% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.

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The market in the Asia Pacific region is experiencing significant growth due to the escalating demand from the automotive and electronic industries. This expansion is driven by rapid economic development, increasing standards of living, and the proliferation of personal technology and advanced appliances, including smartphones, televisions, and computers. Historically, China has been a dominant player in the production of rare earth oxides, supplying the international market with competitive prices since the 1980s.

However, China's gradual reduction of export quotas has disrupted the supply chain, causing price volatility in the market. Raw material prices for rare earth metals, such as Samarium, Scandium, Terbium, Thulium, Ytterbium, and Yttrium, have been impacted by China's export policies. These metals are essential components in various industries, including renewable energy and wind turbines. The supply chain has been affected by China's export restrictions, causing concerns about potential water contamination from mining and processing operations. Companies like Solvay are exploring alternative sources and recycling methods to mitigate the risks associated with raw material supply. The demand is expected to continue growing, particularly in the renewable energy sector, as the world transitions to cleaner energy sources.

Market Dynamic

Rare Earth Metals refer to a group of 17 chemically similar elements, namely Neodymium, Praseodymium, Dysprosium, Terbium, Yttrium, and others including Cerium, Erbium, Europium, Lanthanum, Promethium, Samarium, Gadolinium, and others. These elements are essential components in various industrial applications, particularly in the manufacturing of rare-earth magnets used in wind turbines and catalyst systems. The Earth's crust contains concentrated deposits of these metals, with China being the largest producer and exporter. It plays a crucial role in numerous industries, including aerospace, automotive, electronics, and energy. The market is significant due to their extensive usage in various applications. The periodic table lists these elements, with Neodymium and Praseodymium being the most commonly used ones in the production of rare-earth magnets. Other elements like Dysprosium, Terbium, Yttrium, Cerium, Erbium, Europium, Lanthanum, Promethium, Samarium, and Gadolinium also hold importance in various industrial applications. Hybrid electric vehicle (HEV) utilize rare earth elements (REEs) in their construction to enhance energy efficiency and performance, and these hybrid electric vehicle (HEV) will boost the growth of the market.

Key Driver

Growing demand for electronic appliances and personal equipment is notably driving market growth. The global market encompasses 17 chemically similar elements, including cerium, dysprosium, erbium, europium, gadolinium, holmium, lanthanum, neodymium, neodymium oxide, praseodymium, promethium, terbium, thulium, yttrium, and lutetium. These elements are integral to various industries such as Aerospace, Defense, and High-tech technologies. In Electronics, they are utilized in Catalyst systems, batteries, LED lamps, and Phosphors for color variations in LCDs and smartphones. Rare earth metals are also essential in the production of Rare earth magnets, metallurgy, glass & ceramics, and clean energy applications. Despite their widespread use, the mining and processing of these elements pose environmental impacts and habitat destruction concerns. Moreover, geopolitical factors and air contamination during mining have raised regulatory scrutiny.

Moreover, concentrated deposits of these elements are primarily found in China, making supply chain vulnerabilities a significant challenge. Rare earth metals are indispensable in various industries, including the automotive sector for auto-catalysts and in the manufacturing of batteries for electric vehicles. The increasing demand for clean energy and the growing popularity of high-tech technologies further fuel the market's growth. However, the market's expansion is not without challenges, as the mining and processing of these elements can result in significant environmental impacts and geopolitical tensions. The market is expected to grow significantly due to the increasing demand for clean energy, electric vehicles, and high-tech technologies. The production and capacity of these elements are continually expanding to meet the growing demand. However, the environmental and geopolitical challenges associated with their mining and processing must be addressed to ensure sustainable growth.

Significant Trends

The rise in production capacities and the emergence of alternative suppliers is an emerging trend shaping market growth. The market, comprised of 17 chemically similar elements, is experiencing significant growth due to increasing demand and strategic evaluations of domestic reserves. These elements, essential for various high-tech applications, are primarily used in Aerospace, Air contamination control, Auto-catalysts, batteries, Catalyst systems, ceramics, Clean energy, and Electronics. The Earth's crust contains concentrated deposits of these metals, with notable reserves found in India, South Africa, Brazil, Australia, Canada, Vietnam, and Malaysia. Geopolitical factors and defense considerations are driving the investment in this sector. For instance, the US Department of Defense (DoD) awarded a USD120m contract to Lynas Rare Earths for constructing a commercial Heavy Rare Earths (HRE) separation facility in Texas. The demand for Rare Earth Metals is fueled by their applications in various industries, including Glass & Ceramics, Habitat destruction prevention, High-tech technologies, and Metallurgy. The elements Neodymium, Praseodymium, Dysprosium, and Neodymium oxide are crucial for producing Rare Earth Magnets, widely used in electric vehicles and wind turbines.

Moreover, other elements like Cerium, Lanthanum, and Promethium are used in batteries, LED lamps, Phosphors, and Catalyst systems. The mining and processing of Rare Earth Metals can have environmental impacts, necessitating the development of sustainable production and capacity expansion strategies. Elements like Europium, Gadolinium, Erbium, Holmium, and Lutetium are used in various applications, including defense, electronics, and clean energy. The periodic table lists these elements, with their atomic numbers and properties. The mining and processing can lead to habitat destruction, necessitating the implementation of responsible mining practices and the exploration of new resources in North America, Australia, and Africa.

Major Restraints

Demand-supply outages and the rise of substitutes a significant challenges hindering the market growth. The market encompasses 17 chemically similar elements, primarily used in various industries due to their unique properties. These elements, including cerium, dysprosium, erbium, europium, gadolinium, lanthanum, neodymium, praseodymium, and terbium, among others, are essential for high-tech technologies, defense applications, clean energy, and electronics. The Earth's crust contains these elements in scattered and concentrated deposits, with the US and China being the primary producers and exporters. The global demand is widespread, with applications in aerospace, air contamination control, auto-catalysts, batteries, catalyst systems, ceramics, defense, electric vehicles, glass, LED lamps, magnets, metallurgy, phosphors, and rare earth magnets. However, the production and capacity are limited, making the market vulnerable to geopolitical factors, environmental impacts, and rising production costs. The closure of small mining sites due to habitat destruction, federal quotas, and environmental concerns can disrupt the supply chain, leading to price fluctuations and availability challenges for sensitive end-users.

Further, rare earth oxides, such as neodymium oxide and praseodymium oxide, are crucial components in the production of rare earth magnets, which are essential for various industries, including automotive, wind energy, and electronics. The mining and processing of rare earth metals can have significant environmental impacts, including air contamination and habitat destruction. The increasing demand for clean energy and sustainable production methods is driving research and development efforts to find alternative sources and more efficient mining techniques. In summary, the market is characterized by its critical role in various industries, limited production capacity, and geopolitical vulnerabilities. The 17 rare earth elements, including cerium, dysprosium, erbium, europium, gadolinium, lanthanum, neodymium, praseodymium, and terbium, among others, are essential for aerospace, defense, clean energy, electronics, and other high-tech applications. The global demand for these metals is widespread, but the production is heavily concentrated, making the market vulnerable to disruptions and price fluctuations. 

Who are the Major Market Companies?

Companies are implementing various market trends and analysis strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market and result in market growth analysis.

Alkane Resources Ltd - The company offers rare earth metals including neodymium, praseodymium, dysprosium, and terbium, among others. They are primarily used in the production of magnets, catalysts, batteries, and various other advanced technologies.

The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including Alkane Resources Ltd, Arafura Rare Earths Ltd., Arnold Magnetic Technologies Corp., Avalon Advanced Materials Inc., Canada Rare Earth Corp, Energy Transition Minerals Ltd., Frontier Rare Earths Ltd., HEFA Rare Earth Canada Co. Ltd., Hitachi Ltd., Iluka Resources Ltd., IREL India Ltd., Lynas Rare Earths Ltd., Montero Mining and Exploration Ltd., Namibia Critical Metals Inc., Neo Performance Materials Inc., Northern Minerals Ltd., Rare Element Resources Ltd., Shin Etsu Chemical Co. Ltd., Resonac Holdings Corp., and Ucore Rare Metals Inc.

The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting growth strategies.

Global Market Customer Landscape

Market Analyst Overview

An Overview Rare Earth Metals (REMs) are essential elements with unique physical and chemical properties. These metals play a significant role in various industries, including electronics, automotive, aerospace, and energy. The global market is experiencing steady growth due to increasing demand from these sectors. The primary sources of REMs are China, Australia, and the United States. China dominates the global market, accounting for over 80% of the total production. The European Union and Japan are significant importers of these metals. The demand for Rare Earth Metals is driven by the increasing production of electric vehicles and renewable energy technologies. Neodymium and dysprosium are crucial components of permanent magnets used in electric motors.

In addition, lanthanum and cerium are used in catalytic converters and fuel cells, respectively. The metals are expected to grow at a moderate pace due to the availability of substitutes and the challenges associated with mining and processing these metals. The market is also subject to geopolitical risks due to the concentration of production in a few countries. The market is segmented based on the type of metal, application, and region. The major types of Rare Earth Metals include Neodymium, Praseodymium, Europium, Gadolinium, Terbium, Dysprosium, Yttrium, and others. The applications of Rare Earth Metals include magnets, catalysts, phosphors, and others. The major regions for Rare Earth Metals production and consumption include Asia Pacific, Europe, North America, and the Rest of the World.

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What are the Key Data Covered in this Market Forecast Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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