Rare Earth Mineral Market is expected to grow at a 13.25% CAGR, achieving USD 11.817 billion in 2031 from USD 5.601 billion in 2025.
There are 17 metallic elements together referred to as rare earth minerals (REM). Along with scandium and yttrium, these include the fifteen lanthanides listed on the periodic table. More than 200 different devices require 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 widely used in defence. Even though 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 faster due to the increased demand for these minerals in the manufacturing of magnets and catalysts for the automotive industry and their extensive use in the production of batteries for electric vehicles. The rare earth mineral’s application further influences the market 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 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%.
IREL (India) Limited, in collaboration with CSIR-IMMT, hosted an "Industry and R&D Summit on Rare Earth" in December 2022 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 is estimated that it will cost US$27 million to complete the entire Saskatoon processing facility. According to the company's announcement, the facility's rare earth hydrometallurgical leaching, purification, and precipitation circuits won't be finished until 2024.
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 Asia-Pacific region dominates the market for rare earth minerals. The consumption of rare earth elements is anticipated to rise significantly in the area due to expanding investments in the healthcare sector and rising ceramic demand and manufacturing. With investments from numerous firms, countries like India, Vietnam, China, and Japan have become major centers for electronics production 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, the exploding manufacturing of consumer electronics, and rising semiconductor consumption due to 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 adding 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 Segmentation:
By Type
Lanthanum
Yttrium
Lutetium
Erbium
Europium
Cerium
Others
By Application
Magnets
Metallurgy
Batteries
Polishing Agent
Glass and Ceramics
Catalyst
Phosphors
Others
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
United Kingdom
Spain
Others Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
India
Japan
South Korea
Indonesia
Thailand
Others