Rare-Earth Metals Market Analysis and Global Forecast 2023-2033

Rare-Earth Metals Market Overview

The Rare-Earth Metals Market Size is expected to reach USD 16.56 Billion by 2033. The Rare-Earth Metals industry size accounted for USD 5.64 Billion in 2023 and is expected to expand at a CAGR of 10.26% from 2023 to 2033. Rare-earth metals, alternatively known as rare-earth elements (REEs), constitute a group of 17 chemically akin elements present in the Earth’s crust. Contrary to their nomenclature, these metals are not inherently scarce; however, they are typically distributed in low concentrations, posing challenges in extraction and refinement processes. This group encompasses elements like neodymium, europium, and yttrium, distinguished by their unique magnetic, luminescent, and catalytic properties crucial for diverse technological applications. Rare-earth metals play an integral role in the production of high-performance magnets utilized in electric vehicles, wind turbines, and electronic devices. Their paramount significance in contemporary industries, coupled with geopolitical apprehensions regarding their concentrated production in select nations, accentuates the strategic relevance of rare-earth metals in driving global technological progress and ensuring economic competitiveness.

Global Rare-Earth Metals Market Synopsis

COVID-19 Impact Analysis

The COVID-19 pandemic exerted a multifaceted impact on the Rare-Earth Metals market. Initially, the global disruptions in supply chains and manufacturing activities led to a downturn in demand, particularly in industries like automotive manufacturing and electronics. Lockdowns and restrictions impeded production and delayed projects, affecting the consumption of rare-earth metals. However, as the pandemic progressed, certain segments of the market experienced a resurgence due to increased demand for technologies reliant on rare-earth elements, such as medical equipment, renewable energy systems, and electric vehicles. The heightened awareness of the strategic importance of these metals, coupled with the emphasis on sustainable technologies, contributed to a complex and evolving landscape within the Rare-Earth Metals market throughout the pandemic.

Rare-Earth Metals Market Dynamics

The major factors that have impacted the growth of Rare-Earth Metals are as follows:

Drivers:

Ø  Technological Advancements and High-End Applications

The Rare-Earth Metals market is the continuous evolution of technology and the increasing demand for high-end applications. Rare-earth metals, including neodymium and dysprosium, are essential components in the manufacturing of advanced technologies such as electric vehicles, wind turbines, and electronics. The development of these cutting-edge applications amplifies the demand for rare-earth metals, driving market growth.

Restraint:

• Supply Chain Vulnerability and Geopolitical Challenges

The Rare-Earth Metals market is the vulnerability of the supply chain, coupled with geopolitical challenges. A limited number of countries, particularly China, dominate the production of rare-earth metals, creating concerns about supply security. Geopolitical tensions and trade disputes can disrupt the supply chain, leading to uncertainties in the availability of these critical metals, and affecting market stability and pricing.

Opportunity:

⮚      Rising Emphasis on Sustainable Practices

The Rare-Earth Metals market lies in the increasing emphasis on sustainable practices. As industries and governments globally prioritize environmental sustainability, there is a growing demand for technologies that rely on rare-earth metals for their green and clean energy applications. This shift towards sustainable practices opens avenues for market players to align their strategies with environmentally friendly initiatives, fostering growth in the Rare-Earth Metals market.

Rare-Earth Metals Segment Overview

By Element

Based on Element, the market is segmented based on Cerium, Neodymium, Lanthanum, Dysprosium, Terbium, Erbium, Europium, Gadolinium, Holmium, Lutetium, Praseodymium, Promethium, Samarium, Thulium, Ytterbium, Yttrium, Scandium, Others. The Cerium segment in the Rare-Earth Metals market is poised for substantial growth throughout the forecast period, driven by its pivotal role in various clean energy technologies and its increasing application in catalysts for environmental and industrial processes. The rising demand for cerium-based products in automotive catalytic converters and renewable energy applications is expected to contribute significantly to the segment’s expansion, reflecting the broader trend of transitioning towards sustainable and eco-friendly practices.

By Application

Based on the Application, the market has been divided into Catalysts, Ceramics, Phosphors, Glass and polishing, Metallurgy, Magnets, and Others. The Catalysts segment in the Rare-Earth Metals market is poised for substantial growth during the forecast period, attributed to the escalating demand for rare-earth elements in catalytic converters for automotive emission control systems, as well as their critical role in refining and petrochemical processes. Increasing environmental regulations and a growing focus on cleaner technologies are propelling the adoption of rare-earth-based catalysts, underscoring the segment’s pivotal contribution to advancements in sustainable industrial practices.

Global Rare-Earth Metals Market Regional Analysis

Based on region, the global Rare-Earth Metals market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Rare-Earth Metals market followed by the Asia-Pacific and Europe regions.

North America Market

North America has historically maintained a dominant position in the Rare-Earth Metals market. The region’s prominence can be attributed to its advanced technological infrastructure, robust industrial base, and significant investments in research and development. With a burgeoning demand for high-tech applications such as electronics, electric vehicles, and renewable energy technologies, North America has been a key consumer of rare-earth metals. Additionally, strategic initiatives aimed at reducing dependency on foreign sources, particularly in the wake of geopolitical considerations, have driven efforts to enhance domestic production and processing capabilities. The region’s leadership in technological innovation and its commitment to advancing sustainable practices further underscore North America’s pivotal role in shaping the trajectory of the Rare-Earth Metals market.

Asia-Pacific Market

The Asia-Pacific region has witnessed a rapid and remarkable surge in the Rare-Earth Metals industry, emerging as a focal point for both production and consumption. China, in particular, has played a pivotal role, dominating the global rare-earth market with abundant reserves and a well-established supply chain. The region’s accelerated industrialization, coupled with advancements in technology and electronics manufacturing, has fueled the demand for rare-earth metals. Moreover, the emphasis on renewable energy and electric vehicles in countries like Japan and South Korea has further intensified the need for these critical elements. As a result, the Asia-Pacific region has become a powerhouse in the Rare-Earth Metals industry, shaping global market dynamics and influencing the strategic landscape of key technological sectors.

Competitive Landscape

The Global Rare-Earth Metals market is highly competitive, with numerous players offering a wide range of solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.

Prominent Players:

• China Northern Rare Earth Group High-Tech Co., Ltd
• Lynas Corporation Limited
• MP Materials Corporation
• Jiangxi Copper Corporation
• Shin-Etsu Chemical Co., Ltd.
• Arafura Resources Limited
• Alkane Resources Ltd.
• Iluka Resources Limited
• Indian Rare Earths Limited (IREL)
• Neo Performance Materials Inc.

Key Development:

In August 2022, Lynas Rare Earths Ltd from Australia revealed its proposal to enhance the capacity of its Mt Weld mine in Western Australia, known for its deposits of neodymium (Nd) and praseodymium (Pr). The company envisions commencing the expansion efforts by early 2023, to achieve full operational capacity by 2024.

 

In April 2022, Iluka Resources Ltd made public a substantial investment amounting to USD 1.2 billion for the development of the Eneabba Phase 3 rare earth refinery in Western Australia, exclusively dedicated to the production of rare Earth oxides. This investment is strategically aimed at positioning Iluka as a key hub for the downstream processing of Australia’s rare earth resources.

 

Scope of the Report

Global Rare-Earth Metals Market, by Element

• Cerium
• Neodymium
• Lanthanum
• Dysprosium
• Terbium
• Erbium
• Europium
• Gadolinium
• Holmium
• Lutetium
• Praseodymium
• Promethium
• Samarium
• Thulium
• Ytterbium
• Yttrium
• Scandium
• Others

Global Rare-Earth Metals Market, by Application

• Catalysts
• Ceramics
• Phosphors
• Glass & Polishing
• Metallurgy
• Magnets
• Others

Global Rare-Earth Metals Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $16.56 Billion
CAGR	10.26% CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Element, Application
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	China Northern Rare Earth Group High-Tech Co., Ltd, Lynas Corporation Limited, MP Materials Corporation, Jiangxi Copper Corporation, Shin-Etsu Chemical Co., Ltd., Arafura Resources Limited, Alkane Resources Ltd., Iluka Resources Limited, Indian Rare Earths Limited (IREL), Neo Performance Materials Inc.
Key Market Opportunities	• Growing Demand for Rare-Earth Metals in Clean Technologies • Diversification of Supply Chains • Innovation in Recycling Technologies
Key Market Drivers	• Technological Advancements • Increasing global emphasis on sustainable and environmentally friendly practices

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Rare-Earth Metals market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Rare-Earth Metals market historical market size for the year 2021, and forecast from 2023 to 2033
• Rare-Earth Metals market share analysis at each product level
• Competitor analysis with detailed insight into its product segment, Government and defense strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Rare-Earth Metals market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government and defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.