Rare Earth Metals Market Size & Share, by Type (Light, Heavy); Application (Electronics, Lighting, Semiconductors) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 5142
  • Published Date: Aug 10, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Rare Earth Metals Market size is anticipated to reach USD 20 billion by the end of 2035, growing at a CAGR of 8% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of rare earth metals was over USD 10 billion. Mining and processing rare earth metals can have significant environmental impacts, leading to concerns over sustainable practices in the industry. Various efforts have been made to improve environmental regulations and responsible mining practices. The market can have geopolitical implications due to their strategic importance in various industries. Countries may use export restrictions or tariffs as a political tool, affecting global supply chains and prices.

Rare earth metals are a group of seventeen elements found in the periodic table. They possess unique properties that make them crucial components in various technological applications, including electronics, magnets, renewable energy technologies, defense systems, and more. The market has experienced price volatility in the past, partly due to China's control over supply. As demand for rare earth metals increases with the growth of technology sectors, prices can fluctuate based on supply availability and geopolitical factors.


Rare Earth Metals
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Rare Earth Metals Sector: Growth Drivers and Challenges

Growth Drivers

  • Increased Investment in Green Energy Technologies: The Global Wind Energy Council reported that the cumulative installed wind power capacity reached 743 GW by the end of 2020, indicating a significant growth in wind energy projects that require rare-earth magnets in turbines.
  • Technological Advancements and Electronics Industry Growth: The increasing adoption of electric vehicles (EVs) and renewable energy technologies has been a significant driver of rare earth metals demand. Rare-earth magnets, such as neodymium-iron-boron (NdFeB) magnets, are vital components in EV motors and wind turbines.
  • Growing Demand for Consumer Electronics: The proliferation of smartphones, laptops, tablets, and other consumer electronic devices has led to a rising demand for rare-earth elements, particularly in the miniaturization of components and the development of high-performance screens and speakers.

Challenges

  • Supply Concentration and Dependence: The rare earth metals market has been historically dominated by China, which accounts for a significant share of global production and reserves. This concentration raises concerns about supply chain vulnerabilities and dependence on a single country for these critical elements.
  • Environmental Impact
  • Price Volatility

Rare Earth Metals: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~8%

Base Year Market Size (2022)

~ USD 10 Billion

Forecast Year Market Size (2035)

~ USD 20 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of Middle East and Africa)
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Rare Earth Metals Segmentation

Type (Light, Heavy)

The light segment is estimated to gain the largest market share of 63% in the year 2035. Light rare earth metals are commonly used in electronics and semiconductors due to their unique magnetic and electrical properties, making them essential for manufacturing electronic devices. The increasing demand for electronic devices fuels the need for LREEs in their production. LREEs, particularly neodymium and praseodymium, are crucial components in high-performance magnets used in EV motors and wind turbines, driving the growth of the LREEs segment. According to the International Energy Agency (IEA), the global electric car stock exceeded 10 million vehicles in 2020, with the number projected to grow further in the coming years.

Additionally, the Global Wind Energy Council reported that the cumulative installed wind power capacity reached 743 GW by the end of 2020, indicating the increasing demand for wind turbines.

 

Application (Electronics, Lighting, Semiconductors)

The electronics segment in the rare earth metals market is expected to garner a significant share in the year 2035. Advancements in electronics technology, such as the development of smaller and more powerful microprocessors, integrated circuits, and sensors, drive the growth of the electronics sector. New technologies enable the creation of innovative and more sophisticated electronic products. The growing popularity of smartphones, tablets, smartwatches, and other smart devices has contributed significantly to the expansion of the electronics segment. These devices offer advanced functionalities and connectivity, driving consumer demand.

Our in-depth analysis of the global market includes the following segments:

   Type

  • Light
  • Heavy

 

   

   Application

  • Electronics
  • Lighting
  • Semiconductors

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Rare Earth Metals Industry – Regional Synopsis

APAC Market Forecast

The rare earth metals market in the Asia Pacific region is projected to hold the largest market share of 40% by the end of 2035. The Asia Pacific region is a significant consumer electronics market, with a large population and increasing disposable incomes driving demand for electronic devices. Asia Pacific accounted for more than 40% of global consumer electronics revenue in 2020, making it the largest consumer electronics market in the world. The region's push towards renewable energy projects and the adoption of electric vehicles (EVs) drives demand for rare earth metals used in wind turbines, EV motors, and battery technologies.

North American Market Statistics

The rare earth metals market in the North America region is projected to hold the second largest share during the forecast period. North America is known for its strong emphasis on technological advancements and innovation, driving the demand for rare earth metals used in various high-tech applications. The growing focus on renewable energy projects and clean technologies in North America drives the demand for rare earth metals used in wind turbines, electric vehicles, and other clean energy applications.

Research Nester
Rare Earth Metals Size
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Companies Dominating the Rare Earth Metals Landscape

top-features-companies
    • Lynas Corporation (Australia)
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • China Northern Rare Earth Group (China)
    • Iluka Resources (Australia)
    • MP Materials (United States)
    • China Minmetals Corporation (China)
    • Arafura Resources (Australia)
    • Shenghe Resources Holding Co., Ltd. (China)
    • Alkane Resources Limited (Australia)
    • Great Western Minerals Group (Canada)
    • Indian Rare Earths Limited (India)

In-the-news

In The News

  • China Northern Rare Earth Group announced in May 2023 that it would invest USD 1 billion in a new rare earth processing plant in Inner Mongolia. The plant is expected to be completed in 2025 and it will have a capacity of 100,000 tons of rare earth concentrate per year.
  • Iluka Resources announced in May 2023 that it would expand its rare earths processing plant in Australia. The expansion is expected to cost USD 200 million and it will increase the plant's capacity by 50%.

Author Credits:  Smruti Ranjan, Rajrani Baghel


  • Report ID: 5142
  • Published Date: Aug 10, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing demand for electronics is the major factor driving the market growth.

The market size of rare-earth metals is anticipated to attain a CAGR of 8% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Lynas Corporation (Australia), China Northern Rare Earth Group (China), Iluka Resources (Australia), MP Materials (United States), China Minmetals Corporation (China), and others.

The electronics segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Rare Earth Metals Market Report Scope
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