Market Insights
The rare earth metals market was estimated at USD 5.84 billion in 2022 and is likely to grow at a CAGR of 12.42% during 2023-2028 to reach USD 11.78 billion in 2028.

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What are rare earth metals?
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.
Rare Earth Metals Market Highlights
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Market Size in 2022
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USD 5.84 billion
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Market Size in 2028
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USD 11.78 billion
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Market Growth (2023-2028)
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12.42% CAGR
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Base Year of Study
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2022
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Trend Period
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2017-2021
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Forecast Period
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2023-2028
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Market Dynamics
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 rises 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 parallelly. Electric cars fleet counted ~26 million in 2022, marking a 60% surge from the previous year. 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 is 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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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 2022, 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 2022 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 >70% in 2022. 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 export 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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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 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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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.
Research Methodology
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 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.
Report Features
This report, from Stratview Research, studies the global rare earth metals market over the period 2017 to 2028. The report provides detailed insights into the market dynamics in order to make informed business decisions and build a growth strategy based on the opportunities present in the market.
What Deliverables Will You Get in this Report?
Key questions this report answers
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Relevant contents in the report
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How big is the sales opportunity?
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In-depth Analysis of the Rare Earth Metals Market
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How lucrative is the future?
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Market forecast and trend data and emerging trends
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Which regions offer the best sales opportunities?
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Global, regional, and country-level historical data and forecasts
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Which are the most attractive market segments?
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Market segment analysis and Forecast
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Which are the top players and their market positioning?
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Competitive landscape analysis, Market share analysis
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How complex is the business environment?
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Porter’s five forces analysis, PEST analysis, Life cycle analysis
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What are the factors affecting the market?
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Drivers & challenges
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Will I get the information on my specific requirement?
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10% free customization
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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
Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.
Recent Industry Developments
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.
September 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.