Rare Earth Mineral Market Size, Share, Opportunities, And Trends By Type (Lanthanum, Yttrium, Lutetium, Erbium, Europium, Cerium, Others), And By Geography - Forecasts From 2023 To 2028

The rare earth mineral market size was valued at US$1,841.730 million in 2021 and is expected to grow at a CAGR of 9.92% to reach US$4,123.354 million by 2028.

There are 17 metallic elements together referred to as rare earth minerals (REM). Along with scandium and yttrium, these also include the fifteen lanthanides listed on the periodic table. More than 200 different devices require the use of rare-earth minerals, many of which are high-tech consumer goods including cell phones, computer hard drives, electric and hybrid cars, flat-screen monitors, and televisions. These rare earth mineral-based electronic displays, navigational aids, lasers, radar, and sonar devices are all widely used in defence. Despite the fact that the amount of these minerals used in a product may not constitute a sizable portion of it in terms of weight, value, or volume, the REM may be required for the device to operate. For instance, the voice coils and spindle motors of desktops and laptops would not be conceivable without magnets constructed of REM, even though they frequently only make up a small portion of the overall weight.

The market for rare earth minerals is expanding due to the increasing use of these materials in various applications and the demand for sustainable energy.

The market is expected to develop at a faster rate due to the increased demand for these minerals in the manufacturing of magnets and catalysts for the automotive industry as well as their extensive use in the production of batteries for electric vehicles. The market is further influenced by the rare earth mineral’s application in catalytic converters used in rechargeable batteries, fluorescent lights, telephones, smartphones, other cellphones, and exhaust systems for cars. Additionally, the market for rare earth metals is positively impacted by R&D activities, the expansion of end-use industries, urbanization and industrialization, and the focus of various organizations and businesses on advancing technology.

The demand for these metals is also being driven by their numerous uses in defense equipment, such as communication devices, night vision devices, precision-guided missiles, and stealth technologies. The market for rare earth minerals is also boosted by initiatives by the public and private sectors to enhance the production and trade of these minerals. According to data from the US Government, the expected value of rare-earth metals and compounds imported by the US in 2021 was $160 million, a significant rise from the estimated value of $109 million in 2020.  Catalysts accounted for 74% of the predicted distribution of rare earth mineral's end uses, followed by ceramics and glass, 10%, metallurgical uses and alloys, 6%, polishing, 4%, and others, 6%.

Key Developments.

An "Industry and R&D summit on Rare Earths" was hosted in December 2022 by IREL (India) Limited in collaboration with CSIR-IMMT in Bhubaneswar, India. The Conclave's goal was to encourage academic and research institutions to start concentrated R&D projects employing rare earth minerals to advance in the hierarchy and budding enterprises to establish production facilities for commercial exploitation, just like in any budding economy. Professionals from various R&D institutions and industrial enterprises attended the conclave.

The Australian company Vital Metals announced in December 2022 that it was pivoting from completing the Saskatoon rare earth materials separation plant to better match with its Norwegian offtake partner. Over US$15 million is thought to have gone into building the Saskatoon plant. For a revised total cost of about US$41 million for the entire project, it estimates that it will cost US$27 million to complete the entire Saskatoon processing facility. The rare earth hydrometallurgical leaching, purification, and precipitation circuits at the facility won't be finished until 2024, according to the company's announcement.

Both in North America and the Asia Pacific region, the market for rare earth minerals is expected to develop dramatically, with the Asia Pacific region accounting for a sizable amount of that expansion.

The market for rare earth minerals is dominated by the Asia-Pacific region. The consumption of rare earth elements is anticipated to rise significantly in the area due to expanding investments in the healthcare sector as well as rising ceramic demand and manufacturing. With investments from numerous firms, countries like India, Vietnam, China, and Japan have become major centers for the production of electronics in the Asia Pacific region. Furthermore, North America is expected to increase significantly during the projection time. The main drivers of the region's escalating demand for these minerals are the expanding end-use sectors, the soaring population of tech-savvy residents, exploding manufacturing of consumer electronics, and rising semiconductor consumption as a result of technological breakthroughs. AI-driven systems, intelligent LED lighting, smartphones, and a wide range of other items are all made with the help of these elements. Additionally, the region has seen an increase in the development of green energy products like EVs, and these minerals are crucial for many of their components. 

The yttrium rare earth minerals market is predicted to account for a sizable percentage based on type throughout the forecast period.

The rare earth mineral market for yttrium is primarily driven by the relatively diverse uses of yttrium, which range from construction to pharmaceuticals. Additionally, the market is seeing increasing opportunities due to the expanding use of yttrium in the defense industry. The glass used to create camera lenses is strengthened to withstand heat and shock by the addition of yttrium oxide. Superconductors are also created using it. Medical applications for the radioactive isotope yttrium-90 include the treatment of several malignancies, notably liver cancer. This market is developing due to the variety of usage of yttrium across several end-user industries.

Rare Earth Mineral Market Scope:

Key Market Segments

• By Type
  • Lanthanum
  • Yttrium
  • Lutetium
  • Erbium
  • Europium
  • Cerium
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East And Africa
    • Saudi Arabia
    • Israel
    • Other
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Taiwan
    • Others