Rare Earth Metals Market Projected to Reach USD 21.03 Billion by 2035, Fueled by Rising Demand from Clean Energy and EV Technologies | Report by SNS Insider
Austin, May 03, 2026 (GLOBE NEWSWIRE) -- The Rare Earth Metals Market was valued at USD 9.06 billion in 2025 and is expected to reach USD 21.03 billion by 2035, growing at a CAGR of 8.75% from 2026 to 2035.
The market for rare earth metals is steadily expanding due to rising demand from high-tech devices, electric vehicles, and various sustainable energy technologies. These metals are essential to the manufacturing of magnets needed for electric car engines and wind power systems.
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U.S. Rare Earth Metals Market was valued at USD 0.91 billion in 2025 and is expected to reach USD 2.10 billion by 2035, growing at a CAGR of 8.75%.
The U.S. market is growing at a faster rate due to increased demand for rare earth metals in defense equipment, electric vehicles, and renewable energy applications. The government is taking steps to improve mining capacity, lessen dependency on imports, and expand the availability of native supplies.
Accelerating Global Electric Vehicle Production Boost Market Growth
The demand for rare earth permanent magnets is rising significantly as a result of the global transition to clean energy and the expansion of electric vehicles. Because of their great energy density, efficiency, and compactness, these magnets are essential to the design of EV traction motors, which weigh between one and two kilograms each. The consumption is higher for offshore wind turbines, particularly those with direct drive, around 600–800 kg per megawatt. By 2040, demand is expected to treble, according to the International Energy Agency.
Segmentation Analysis:
By Type
The Cerium segment accounted for the largest share of around 33% in the Rare Earth Metals Market in 2025 due to its oxidizing capability and low price relative to other rare earth metals. The Neodymium segment is projected to record the highest growth rate in the coming decade till 2035 owing to the rapidly growing requirement for powerful neodymium-based permanent magnets utilized in electric automobiles.
By Application
The Magnets segment held the largest market share of about 38% in 2025 due to their importance in many growing sectors such as consumer electronics, automotive, and renewable energy industries. Catalysts represented the fastest-growing segment during 2026-2035 due to the strict emission standards and demand for cleaner energy sources.
By End-Use Industry
The Electronics segment held the dominant share of approximately 29% in 2025, due to the widespread use of rare earth elements in semiconductor components, display screens, batteries, and other components of electronics. The Energy segment is anticipated to witness the highest growth during 2026-2035, due to the rapid shift towards renewable energies such as wind and solar, and electric vehicles.
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Regional Insights:
Due to China's dominance in rare earth mining and downstream processing, separation, and magnet production, the Asia Pacific region dominated the global market for rare earth metals in 2025, accounting for almost 65% of revenues. The world's largest known reserve of rare earth minerals is found in the Bayan Obo mine in Inner Mongolia, China, which also produces the world's heaviest rare earths.
The region of North America represents one of the most rapidly developing segments of the Rare Earth Metals Market from the perspective of supply development, where the US and Canada are actively promoting their supply chain development programs.
Key Players:
Recent Developments:
2025: MP Materials commenced commercial production of NdFeB permanent magnets at its Fort Worth, Texas manufacturing facility the first U.S.-produced rare earth magnets in decades under a long-term supply agreement with General Motors for EV traction motor magnets, marking a landmark milestone in U.S. rare earth supply chain independence.
2025: Lynas Rare Earths completed construction of its Texas rare earth processing facility under a DoD-funded agreement, adding U.S.-based heavy rare earth separation capacity to complement its existing Australian mining and Malaysian processing operations.
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Exclusive Sections of the Report (The USPs):
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