Rare Earth Metals Market Analysis

Source Segment Analysis

The primary mining sub-segment, which is part of the source segment, is anticipated to hold the largest share of 85.6% in the rare earth metals market by the end of 2035. The sub-segment’s upliftment is highly attributed to its importance for indispensable clean energy, especially for wind turbines and electric vehicles, strategic autonomy, powering modernized economies, along with high-tech electronics, and defense systems. According to an article published by the World Resources Institute Organization in October 2024, there has been a surge in mining by 52%, owing to an increase in the demand for industrial minerals, iron, coal, and other metals. However, there has been a loss of almost 1.4 million hectares of trees from mining-based activities. Besides, there exist 450,000 hectares of rainforests, 150,000 protected areas, and 260,000 hectares of Indigenous Peoples’ and local community lands, thus denoting a growth opportunity for mining.

Magnet Type Segment Analysis

By the end of 2035, the NdFeB segment, under the magnet type, is projected to cater to the second-largest share in the market. The segment’s growth is highly driven by its outstanding magnetic strength, high energy density, and thermal stability, making it indispensable for electric vehicle traction motors, wind turbine generators, robotics, and advanced consumer electronics. The surge in EV adoption globally is a primary driver, as each EV requires several kilograms of NdFeB magnets for efficient motor performance. Wind energy expansion further amplifies demand, with direct-drive turbines relying heavily on NdFeB magnets to reduce maintenance and improve efficiency. Governments across the U.S., EU, Japan, and India are investing in domestic NdFeB magnet manufacturing to reduce reliance on China-driven supply chains, which currently dominate global production.

Processing Stage Segment Analysis

Based on the processing stage, the oxides segment in the rare earth metals market is expected to account for the third-largest share during the forecast timeline. The segment’s development is highly propelled by its role in serving as the foundation for downstream applications in magnets, catalysts, ceramics, and phosphors. Oxides such as neodymium oxide, cerium oxide, and lanthanum oxide are widely used in polishing agents, automotive catalysts, and glass manufacturing, while dysprosium and terbium oxides are essential for enhancing magnet performance. The oxide segment is expected to hold a significant share of the market by 2035, driven by rising demand in clean energy technologies and advanced electronics. Cerium oxide, for instance, is extensively used in catalytic converters to reduce vehicle emissions, aligning with stricter environmental regulations worldwide.

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