Rare Earth Metals Market Growth Analysis | 2024-2030

Market Insights

The rare earth metals market was estimated at USD 5.3 billion in 2023 and is likely to grow at a CAGR of 12.67% during 2024-2030 to reach USD 12.23 billion in 2030.

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Market Dynamics

Introduction

Rare earth metals are a group of elements found in the earth's crust with similar physical and chemical properties. These extracted elements can be processed in their ore forms and fall into both hard and light categories. Praseodymium and Samarium are light metals that are more easily found as compared to heavy metals like terbium, holmium, gadolinium, europium, thulium, dysprosium, and ytterbium, etc.

COVID-19 IMPACT

The rare earth metals market was majorly impacted by the global pandemic in the year 2020. Worldwide lockdowns and restrictions led to the downfall of the market in the year 2020. However, the market is likely to rebound from the year 2021.

Market Drivers

Several factors are driving the rare earth metals market. A few are mentioned below –

• Rise in adoption of electronic gadgets and other consumer electronics: Neodymium, one of the rare earth metals, is widely used in mobile phones, headphones, computer discs, etc. The rising use of consumer electronics thus raises the demand for this rare metal.
• Increasing numbers of Electric motors: Rare earth metals are used in manufacturing electric motors. With the growing environmental concerns, there is a surge in demand for clean energy, which requires more electric vehicles and motors. Electric car fleet counted ~26 million in 2022, marking a 60% surge from the previous year. The International Energy Agency estimates the number of electric vehicles on the roads crossing an impressive milestone of ~350 million by 2030. This, as a result, increases the need for rare earth metals.
• Growing use of rare earth magnets in wind turbines: Rare earth metals are crucial in the construction of direct-drive wind turbines. The rising use of turbines hence rises the demand for rare earth metals and magnets.

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Key Players

There is a presence of small to large-scale producers of rare earth metals in China and worldwide.

The key manufacturers are:

• Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co Ltd.
• Molycorp Inc
• China Minmetals Rare Earth Co. Ltd
• Great Western Minerals Group Ltd.
• Alkane Resources Ltd
• Arafura Resources Ltd.
• Lynas Corp.
• Avalon Rare Metals
• Canada Rare Earth Corporation
• India Rare Earth Ltd.

Note: The above list does not necessarily include all the top players in the market.

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Segments Analysis

By Material Type

The market is segmented into Lanthanum Oxide, Cerium Oxide, Praseodymium, Neodymium, Samarium, Europium, Gadolinium, Terbium, Dysprosium, Yttrium, and Others. Cerium oxide is the most dominant rare earth metal accounting for >40% of the market in 2023, followed by Lanthanum oxide with a >20% share. Cerium oxide and Lanthanum oxide are cheaper than other rare earth metals and are widely used in metal alloys, catalysts, and glass phosphors.

By Application Type

The market is segmented into Permanent Magnets, Catalysts, Glass Polishing, Phosphors, Ceramics, Metal Alloy, Glass Additives, and Others. The top three applications (permanent magnets, metal alloys, and catalysts), together accounted for more than 60% of the market in 2023 and will continue to remain the dominant applications during the forecast period. Permanent magnets are likely to remain the growth engine during the forecast period, driven by increasing penetration in traditional applications as well as emerging applications.

Regional Insights

Asia-Pacific is expected to remain the largest producer and consumer of the market with a volume share of >65% in 2023. China owns the largest reserves of rare earth metals worldwide. China is both the leading producer as well as consumer of rare earth metals. The imposition of restrictions on China’s exports and growing rare earth metals demand within China would create a demand-supply gap in the rare earth metals market worldwide.

The market is likely to witness significant changes in the coming years. New sources of supply are scheduled to be developed across the globe. China, which is the major producer of rare earth metals worldwide, is witnessing consolidation by state-owned enterprises. China owns the largest reserves of rare earth metals followed by Brazil. China will continue to remain the largest producer during the forecast period.

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Recent News & Developments

DEC 2022: Arafura Rare Earths Obtains Strong Support for A$121M Placement- Arafura Rare Earths Limited (ASX: ARU) has secured strong commitments from institutional, sophisticated, and professional investors, both domestic and international, to raise approximately A$121 million. This capital infusion will occur in two stages, with fully paid ordinary shares being issued at a price of A$0.37 per share. Furthermore, the company is extending an opportunity to its existing eligible shareholders through a share purchase plan (SPP), aiming to raise an additional sum of around A$12 million at the same share price.

SEP 2022, China Minmetals Rare Earth Co. unveiled its intention to undergo a name transformation for the listed entity, transitioning to China Rare Earth Group Resources Technology Co (China Rare Earth). This strategic move comes in the wake of a significant merger involving China Rare Earth Group Co. and Jiangxi Copper Co.

SEP 2022: GMDC aims to make Gujarat a Rare Earth processing hub in India- Gujarat Mineral Development Corporation (GMDC), a leading mining PSU enterprise and one of the largest lignite sellers in the country, announced in Sep 2022 that they are keen to establish a Rare Earth Elements (REE) Processing Plant in the country. India is looking at transitioning to green energy across various verticals, and it is here that GMDC is looking at conducting a scoping study to determine the economic viability of the project and outline at least one opportunity to develop the processing plant for the deposit at Ambadongar, Chotaudepur District in Gujarat state in India.

SEP 2022: NioCorp's Demonstration Plant Begins Testing Process Improvements and Rare Earth Recovery Operations- In Sep 2022 NioCorp Developments Ltd. announced that its demonstration-scale processing plant (the "demonstration plant") in Quebec, Canada is now processing ore samples from the Company's Elk Creek Critical Minerals Project (the "Project").  The demonstration plant project is intended to demonstrate that the Company can extract and separate rare earth elements from ore that NioCorp expects to mine from the Project site, subject to receipt of necessary project financing and that its simplified process for potentially producing niobium, scandium, and titanium is technically and economically feasible.

SEP 2022: Venus Metals uncovers potential high-grade clay hosted rare earth at Marvel Loch East- Diversified explorer Venus Metals Corporation (ASX: VMC) has identified grades up to 6,092 parts per million total rare earth oxides from its Marvel Loch East project. The ground, 85km southeast of Southern Cross in Western Australia, is believed to have the potential for clay-hosted REE mineralization. An UlFine soil sampling program at the project led to the discovery of the peak 6,092ppm TREO. The samples also include 702ppm of the critical magnet element neodymium oxide. Venus notes that the analytical results — compiled from data held by Venus and the Geological Survey of Western Australia — define REE anomalies in soil, laterite, and rock chips along a 25km strike length and suggest the presence of an REE-rich bedrock.

AUG 2022: Lynas announces Mt Weld rare earth mine expansion- Lynas Rare Earths Ltd has revealed plans for a substantial $500 million project aimed at enhancing capacity at the Mt Weld mine and concentration plant. This strategic move is in response to the escalating market demand for rare earth materials. The global appetite for rare earth materials, particularly NdFeB magnets, remains on an upward trajectory. Forecasts indicate that the demand for NdFeB magnets is set to surge, with consumption projected to increase from 130,000 tons in 2020 to a remarkable 265,000 tons by 2030. This surge in demand is being fueled by the burgeoning electric vehicle and wind energy sectors.

APRIL 2022: Iluka Resources Ltd has unveiled an ambitious USD 1.2 billion commitment towards the establishment of the Eneabba Phase 3 rare earth refinery in Western Australia, exclusively dedicated to the production of rare Earth oxides. This substantial investment is strategically geared towards positioning Iluka as a central hub for the downstream processing of Australia's abundant rare earth resources. Top of Form

MARCH 2022: Rare earth miner says Nolans Project separation plant is crucial to supply chain diversity- Arafura Resources is confident in its ability to contribute five percent of the global rare earth supply, thanks to its extensive deposit in Central Australia. The company, headquartered in Australia, is set to receive a $30 million investment to facilitate the construction of Australia's inaugural rare earth separation facility at its Nolans Project, situated approximately 135 kilometers north of Alice Springs.

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s rare earth metals market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market, covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The rare earth metals market is segmented into the following categories.

By Material Type

• Lanthanum Oxide
• Cerium Oxide
• Praseodymium
• Neodymium
• Samarium
• Europium
• Gadolinium
• Terbium
• Dysprosium
• Yttrium
• Other

By Application Type

• Permanent Magnets
• Catalysts
• Glass Polishing
• Phosphors
• Ceramics
• Metal Alloy
• Glass Additives
• Others

By Sales Channel Type

• Direct Sales
• Distributors

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and the Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Market Segmentation

• Current market segmentation of any one of the material types by sales channel type.

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

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