Rare Earth Elements Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Rare Earth Elements Market is segmented By Type (Metals (Cerium, Erbium, Europium, Gadolinium, Holmium, Lanthanum, Neodymium, Praseodymium, Promethium, Samarium, Scandium, Terbium, Thulium, Ytterbium, Yttrium), Compounds (Cerium Compounds, Carbonates, Chlorides, Oxides, Others)), By Source (Bastnäsite, Loparite, Monazite, Rare-earth laterite, Xenotime, Others), By Application (Magnets, Catalyst, Metals Alloys, Polishing, Ceramics/Glass, Additives, Others), By End-User (Industrial, Automotive, Glass, Fluorescent Lighting, Electronics (Smart Phones, Readers, Loudspeaker, Portable Computers, Cameras, Others), Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Rare Earth Elements Market Overview

The Global Rare Earth Elements Market is growing at a CAGR of 9.4% during the forecast period (2024-2031).

Rare earth elements are a group of seventeen metals and compounds of the same metals in the periodic table with specific properties. The elements consist of yttrium, scandium and the 15 lanthanide elements such as Cerium, Erbium, Europium, Gadolinium, Holmium, Lanthanum, Neodymium, Praseodymium, Promethium, Samarium, Scandium, Terbium, Thulium, Ytterbium and Yttrium.

Rare Earth Elements Market Summary

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Rare Earth Elements Market Dynamics 

The rise of new production capacities coupled with increased demand for electric vehicles

The introduction of effective hybrid vehicle variations is being forced upon the automotive industry by federal incentives and growing concerns over fuel emissions. Future demand for hybrid electric vehicles is anticipated to be extremely high due to improving energy efficiency and a greater awareness of the environment among consumers. In addition to being employed in passenger vehicles, rare earth oxides are also used in magnetic refrigeration, electric tricycles and bicycles.

Additionally, terbium, cerium, yttrium and gadolinium rare earth compounds are employed as phosphors in various electronic devices, including LCDs and smartphones. These rare earth compounds display electro-phosphorescence, in which an electric discharge causes changes in color within the compounds.

Long realization period and uncertain investment environment

It takes at least five years for a rare earth mine to mature to the point of commercial production. During this time, extensive topographical mapping and significant infrastructural investments are needed. Additionally, long-term investments in infrastructure for community housing, transportation, water and energy sources are needed to support the expansion of production facilities. Most project spending by rare earth mining firms comprises all of these.

Rare Earth Elements Market  Segmentation Analysis

The global rare earth elements market is segmented based on type, source, application, end-user and region.

The metal in rare earth elements type drives the market growth 

It is anticipated that the metals sector will control the market. The light elements (lanthanum through samarium) and the heavier elements make up rare earth metals (europium to lutetium). These are more expensive and less frequent. Rare earth compounds commonly glow under UV light, making identification simpler. In addition, when rare piles of earth combine with water or mild acids, hydrogen gas is produced. Rechargeable batteries for computers, cell phones and other portable electronics are made with rare earth metals. Additionally, these are utilized in numerous industries, such as automotive, glass and ceramic goods.

Rare Earth Elements Market Geographical Share

The growing use of Neodymium in automobile industry in North America

North America is expected to dominate the market for rare earth elements during the anticipated period. The region's expanding auto sector is to blame for the increased demand for rare piles of earth. For instance, a renowned American electric vehicle company, Tesla, disclosed that their Model 3 Long Range automobiles employed Neodymium in 2018. It is expected that the measure will enhance the demand for Neodymium. The consumer electronics and nuclear energy sectors will also likely drive demand for rare piles of the earth during the projected timeframe.

Rare Earth Elements Market Companies 

The major global players include China Rare Earth Holdings Limited, Arafura Resources Limited, Lynas Corporation, Ltd., Avalon Advanced Materials Inc., Alkane Resources Ltd, Shin-Etsu Chemical Co. Ltd, Canada Rare Earth Corporation, Iluka Resources Ltd., Eutectix LLC, Rare Element Resources Ltd and others.

Key Developments

• On January 2021, Lynas Corporation signed an agreement with U.S. Government to build a rare light earth separation plant in Texas. It is expected to produce around 5000 tonnes a year of rare earths products, including around 1250 tonnes of neodymium-praseodymium (NdPr).
• On November 2020, Avalon Advanced Materials Inc. entered into a letter of intent with Rock Tech Lithium Inc. to collaborate on developing a lithium battery materials process facility in Thunder Bay, Ontario.
• In November 2018, Arafura Resources Ltd announced its plans to build a separation plant for its Nolans Neodymium-Praseodymium (NdPr) Project. The plant will be located in Australia’s northern territory and convert mixed rare earth intermediate products into refined NdPr Oxide.

The global rare earth elements market report would provide approximately 69 tables, 76 figures and 210 pages.