Rare Earth Market Poised for Rapid Growth to 2035

Global demand for rare earth elements is accelerating as manufacturers scale electric vehicles, wind turbines, high-performance electronics and defence systems.
These 17 elements—notably light rare earths such as neodymium, praseodymium and cerium—are prized for strong magnetic, luminescent and electrochemical properties that enable permanent magnets, device miniaturization and improved energy efficiency.
The market was valued at USD 19.1 billion in 2025 and is projected to reach USD 48.9 billion by 2035, implying a CAGR of about 10.9%.
Primary sources supply most material, with Asia Pacific holding the largest market share while North America is expanding fastest.
Permanent magnets lead applications and the automotive sector is the largest end user, driven by electrification and renewable energy deployment.
Strategic stockpiling and supply-security concerns are rising alongside technical challenges from potential substitutes; industry trends emphasize recycling and lower-impact processing.
In July 2025 BatX Energies and Germany’s Rocklink signed an MOU to establish India’s first rare-earth magnet recycling ecosystem, highlighting investment in circular supply chains for EVs and renewables.
Analysts say environmental impacts, sustainable mining technologies and supply-chain resilience will shape policy and investment decisions going forward.