Rare earth magnet and metal markets projected to grow through 2035

The global rare earth magnet and metal markets are poised for significant expansion, driven by the transition to clean energy, electric vehicle (EV) production, and advanced industrial automation. The rare earth magnet market is expected to grow from $13.09 billion in 2025 to $14.22 billion in 2026, with projections reaching $23.88 billion by 2032. Similarly, the rare earth metals market is forecasted to rise from $9.06 billion in 2025 to $21.03 billion by 2035.

Key demand drivers include the widespread adoption of permanent magnet synchronous motors in EVs, the expansion of wind power infrastructure, and the increasing complexity of robotics and consumer electronics. High-performance magnets, such as Neodymium-Iron-Boron (NdFeB), are essential for these technologies.

To mitigate supply chain vulnerabilities caused by high concentration in China—which accounted for approximately 91% of rare earth element refining and 94% of permanent magnet production in 2024—nations are investing in domestic capabilities. In the United States, companies like MP Materials and Lynas Rare Earths are expanding domestic processing and magnet manufacturing, supported by initiatives such as the Defense Production Act. In Japan, Shin-Etsu Chemical has planned a new refining facility in Fukui Prefecture to stabilize the supply of rare earth-related products.