Rare Earth Metals Market Report 2026

The rare earth metals market size has grown steadily in recent years. It will grow from $8.06 billion in 2025 to $8.43 billion in 2026 at a compound annual growth rate (CAGR) of 4.6%. The growth in the historic period can be attributed to growth in electronics and automotive industries, increasing demand for permanent magnets, expansion of glass and ceramics applications, rising use in catalysts and metallurgical processes, development of large-scale rare earth mining operations.

The rare earth metals market size is expected to see steady growth in the next few years. It will grow to $9.86 billion in 2030 at a compound annual growth rate (CAGR) of 4%. The growth in the forecast period can be attributed to growth in electric vehicle production, increasing investments in renewable energy technologies, rising demand for high-performance electronics, expansion of recycling and circular economy initiatives, adoption of advanced extraction and processing technologies. Major trends in the forecast period include rising demand for rare earth metals in electric vehicles, increasing use of neodymium and dysprosium in permanent magnets, expansion of rare earth applications in catalysts and ceramics, growing focus on recycling and sustainable sourcing of rare earth metals, rising adoption of rare earth metals in high-performance electronics.

The increasing adoption of electric vehicles is expected to drive the growth of the rare earth metals market in the coming years. Electric vehicles (EVs) operate on stored electricity in batteries or other energy storage systems, eliminating the need for internal combustion engines. EVs rely on rare earth metals, particularly neodymium and dysprosium, for producing high-performance magnets used in electric motors due to their strong magnetic properties. For example, in September 2025, the International Council on Clean Transportation, a US-based non-profit organization, reported that global electric vehicle sales exceeded 9 million units in the first half of 2025, representing 23% of all new light-duty vehicle sales worldwide, up from 19% for the full year of 2024. Consequently, the rising number of electric vehicles is fueling growth in the rare earth metals market.

Major companies in the rare earth metals industry are adopting strategic partnership approaches. Strategic partnerships involve companies leveraging each other's strengths and resources to achieve mutual benefits. For instance, in August 2023, USA Rare Earth LLC, a US-based integrated magnet technology company, entered into a partnership with Hatch, a Canada-based professional services firm. This collaboration aims to ensure a consistent supply chain and develop innovative solutions for high-tech applications, emphasizing excellence in engineering and construction of rare earth magnet.

In April 2023, Neo Performance Materials Inc., a Canada-based manufacturer of advanced industrial materials, acquired SG Technologies Group Limited, a UK-based manufacturer of rare-earth-based magnets. This acquisition positions Neo Performance Materials to launch production in 2025 of sintered rare earth magnets in Estonia, catering to markets such as electric vehicles, electronics, and energy-saving specialized motor applications. These developments underscore the industry's commitment to meeting the demands of emerging technologies critical to the global energy transition.

Major companies operating in the rare earth metals market report are Hastings Technology Metals Limited, Hitachi Metals Ltd., Materion Corporation, Iluka Resources Limited, Neo Performance Materials Inc., Lynas Rare Earths Limited, MP Materials Corp, Alkane Resources Limited, Peak Resources Limited, Pensana Rare Earths PLC, Energy Fuels Inc., Arafura Resources Limited, Northern Minerals Limited, RareX Limited, Australian Strategic Materials Limited, Greenland Minerals Limited, Texas Mineral Resources Corp, Rare Elements Resources Ltd., Ucore Rare Metals Inc., Rainbow Rare Earths Limited, Leading Edge Materials Corp, Ionic Rare Earths Limited, Medallion Resources Ltd., Commerce Resources Corp, Vital Metals Limited, Quest Rare Minerals Ltd., Alces Lake Ltd., Appia Energy Corp.

Asia-Pacific was the largest region in the rare earth metals market in 2025. The regions covered in the rare earth metals market are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the rare earth metals market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The rare earth metals market consists of sales of lanthanides, scandium, yttrium, and trivalent earth metals. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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