Highlights

• Global rare earth metals market expected to expand from $6.01B in 2025 to $9.29B by 2032, with a 6.4% CAGR.
• Market dynamics shaped by:
  • Electric vehicle demand
  • Geopolitical tensions
  • Shifting global production landscapes
• Key players like MP Materials pursuing vertical integration while facing challenges in:
  • Supply chain
  • Export controls

A new market outlook from Coherent Market Insights pegs the rare earth metals market at USD 6.01 billion in 2025, with growth projected to reach USD 9.29 billion by 2032—an annual CAGR of 6.4%. Driving forces include soaring electric vehicle (EV) sales, demand for defense and energy storage, and the continued rollout of 5G infrastructure.

But behind the bullish headline lies a complex matrix of geopolitical fragility, price volatility, and processing constraints.

The report notes that North America is scaling up capacity with federal backing, while Latin America and Africa are emerging as new exploration hotspots. The Asia-Pacific region remains the consumption engine, but with China tightening its controls, Western buyers are scrambling to diversify. Europe, meanwhile, is leaning into recycling and sustainable sourcing—but still trails in refining and magnet production.

Key players, including MP Materials, Lynas, Arafura, and Alkane, are pursuing vertical integration, securing upstream feedstock and expanding midstream refining capabilities. MP's 30% refinery ramp in 2024 is a strategic edge as the U.S. deepens its rare earth industrial base. 

Still, investors should temper enthusiasm. Chinese exports declined 4.5% in 2024, while neodymium spot prices increased by 12%. Recycling now accounts for only 15% of global demand. High-tech growth is real—but so are bottlenecks.

To learn more about the rare earth sector, check out the Rare Earth Exchanges Forum (opens in a new tab) and Project Rankings upstream, midstream, and downstream, as well as recycling ventures.