Rare earth metals, also known as rare earth elements, are a set of seventeen chemical elements in the periodic table. These elements play a vital role in the manufacturing of advanced consumer electronics, hybrid electric vehicles, clean energy technologies among others due to their unique catalytic, metallurgical, and phosphorescent properties. With the surging demand for renewable energy resources and smart consumer devices, the global rare earth metals market is witnessing significant growth.
The global rare earth metals market is estimated to be valued at US$4710.8 million in 2024 and is expected to exhibit a CAGR of 6.2% over the forecast period 2024-2030, as highlighted in a new report published by Coherent Market Insights.
Market Key Trends:
The growing adoption of rare earth metals in consumer electronics is a key trend propelling the global market growth. Rare earth metals such as neodymium, praseodymium, and dysprosium are widely used in electronics devices including smartphones, TVs, laptops, and tablets due to their crucial role in manufacturing small and powerful electronic components and batteries. As the demand for sophisticated consumer gadgets with advanced features continues to surge, rare earth metals are increasingly being incorporated in the making of electronics to deliver enhanced performance and efficiency. This rapid uptake of rare earth metals in the booming consumer electronics industry is augmenting the overall market expansion over the forecast period.
- Strength: Rare earth metals have diverse and widespread applications across industries like electronics, automobiles, manufacturing etc. Some metals like neodymium are crucial for manufacturing electronics and magnets.
- Weakness: China dominates the global rare earth metals supply chain. Its control over supply affects prices and creates geopolitical uncertainties. Resource concentration risks and environmental issues associated with mining and processingrare earth metals are also a concern.
- Opportunity: Increasing demand for rare earth metals from renewable energy technologies, electric vehiclespresents an opportunity. Diversifying rare earth metals supply chain from China by other countries also offers opportunities.
- Threats: Volatility in rare earth metal prices poses a threat. Trade war between US and China is a risk factor. Stringent environmental regulations associated with mining can impact supply.
The global rare earth metals market is expected to witness high growth over the forecast period supported by expanding use of rare earth metals in various technologies. The global rare earth metals market is estimated to be valued at US$4710.8 million in 2024 and is expected to exhibit a CAGR of 6.2% over the forecast period 2024-2030.
Regionally, North America and Europe are fastest growing regions for rare earth metals owing to presence of manufacturers and stringent environmental laws supporting diversification of supply chain.
Rare earth metals find wide usage in technologies like electric and hybrid vehicles, lighting solutions, consumer electronics etc. This widespread applications is expected to drive the demand over the coming years. Countries like USA are focussed on developing domestic rare earth metals supply chain to reduce dependency on China which controls over 80% of global supply currently. New mines and refining facilities are being developed to diversify supply.
Key players operating in the rare earth metals market are Alkane Resources, Iluka Resources, Lynas Rare Earths, MP Materials, and Arafura Resources.
Key players in the market are focused on capacity expansions and integrating capabilities across mining, separation and alloy manufacturing to better cater increasing demand. Companies are also exploring new mining jurisdictions to ensure security of supply. While supply constraints and volatility in prices continue to remain challenge, the rare earth metals market offers significant growth opportunities over the long term supported by indispensable role of these metals in green technologies.