Rare Earth Elements Market Report 2026

The rare earth elements market size has grown rapidly in recent years. It will grow from $6.18 billion in 2025 to $6.86 billion in 2026 at a compound annual growth rate (CAGR) of 10.9%. The growth in the historic period can be attributed to growth in electronics and automotive industries, increasing demand for permanent magnets, expansion of renewable energy projects, rising use in catalysts and polishing applications, development of large-scale rare earth mining operations.

The rare earth elements market size is expected to see rapid growth in the next few years. It will grow to $10.44 billion in 2030 at a compound annual growth rate (CAGR) of 11.1%. The growth in the forecast period can be attributed to growth in electric vehicle and wind energy sectors, increasing demand for high-performance electronics, rising adoption in defense and aerospace applications, expansion of sustainable and recycled rare earth sourcing, adoption of advanced extraction and separation technologies. Major trends in the forecast period include rising demand for rare earth elements in high-performance magnets, increasing use of cerium, neodymium, and dysprosium in electronics, expansion of rare earth elements in renewable energy applications, growing focus on recycling and sustainable sourcing of rare earth elements, rising adoption of rare earth elements in advanced industrial applications.

The rising demand for clean energy and electric vehicles is expected to drive the growth of the rare earth elements market in the coming years. Clean energy comes from renewable sources such as solar and wind, while electric vehicles utilize this energy through battery-powered systems to reduce carbon emissions. The growth of clean energy and electric vehicles is fueled by environmental concerns, as they help lower greenhouse gas emissions and address climate change. Rare earth elements are essential for clean energy and electric vehicles, enabling the production of high-performance magnets used in wind turbines and electric motors. For example, in January 2024, the U.S. Energy Information Administration, a US-based government agency, reported that electric vehicles and hybrids accounted for over 16% of total U.S. light-duty vehicle sales in 2023, up from 12.9% in 2022, highlighting the increasing adoption of alternative fuel vehicles. Consequently, the rising demand for clean energy and electric vehicles is fueling growth in the rare earth elements market.

Leading companies in the rare earth elements market are emphasizing the development of innovative solutions, such as high-grade rare earth potential, to improve resource efficiency, meet growing demand, and strengthen their competitive position globally. High-grade rare earth potential refers to the quality and economic viability of a specific rare earth element (REE) deposit, indicating a relatively high concentration of valuable elements compared to typical deposits. For example, in December 2025, MRG Metals Limited, an Australia-based mineral exploration and development company, reported promising high-grade laboratory results from auger drill holes at its Adriano Rare Earth Project in Mozambique. The project contains substantial alluvial deposits with district-scale potential, suggesting a continuous rare earth system within the Adriano-Fotinho corridor. This high-grade REE project supports applications in permanent magnets, batteries, and electronics, while offering improved resource efficiency, higher extraction yields, and reduced environmental impact compared with conventional methods.

In March 2025, Chemours Company, a U.S.-based chemical manufacturer, partnered with Energy Fuels Inc. to strengthen domestic rare earth element production and lessen dependence on foreign imports. This collaboration aims to improve the processing of rare earth elements and other essential minerals by leveraging Energy Fuels’ White Mesa Mill. The alliance is intended to support U.S. economic growth and security by generating jobs and reinforcing the national supply chain for critical minerals. Energy Fuels Inc. is a U.S. company focused on the extraction and processing of uranium, vanadium, and rare earth elements.

Major companies operating in the rare earth elements market report are Solvay SA, Resonac Holdings Corporation, Sinosteel Corporation, Shenghe Resources Holding Company Limited, Lynas Rare Earths Limited, MP Materials Corporation, Treibacher Industrie AG, Neo Performance Materials, Energy Fuels Incorporated, Medallion Resources Limited, Vital Metals Limited, Rare Element Resources Limited, Ucore Rare Metals Incorporated, Appia Rare Earths & Uranium Corporation, REEtec AS, Australian Strategic Materials Limited, Arafura Rare Earths Ltd., Hastings Technology Metals, Pensana Public Limited Company.

Asia-Pacific was the largest region in the rare earth elements market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the rare earth elements 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 elements market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The rare earth elements market consists of sales of glass additives, battery materials, and nuclear reactor control materials. 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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