China Rare Earth Metals Market - 2025-2032

China Rare Earth Metals Market reached US$ 0.91 billion in 2024 and is expected to reach US$ 2.08 billion by 2032, growing with a CAGR of 10.87% during the forecast period 2025-2032.

With an increase in the disposable income of the middle-class population in the country and increasing demand for electronic products in the countries importing electronic products from China, the production of electronics is projected to grow, contributing to rare earth elements market growth as rare earth elements are mainly used in the manufacturing of electronics products for domestic and export markets. China has dominated the rare earth market, pushing out opponents and controlling nearly all of the processing capacity. China has wielded this monopoly of the REE supply chain to influence foreign policies, a weaponization that threatens the economic and national security of U.S.

Market Dynamics

Driver - Rise of new production capacities coupled with increased demand for electric vehicles

China has remained the key producer and supplier of rare earths for the last three decades. However, the country's practice of restricting export quotas and raising duties is forcing various countries to evaluate alternative sourcing agreements. The increase in production capacities outside China is greatly supporting the growing demand for rare earths.

Permanent magnets are widely employed in hybrid vehicles wherein they are used predominantly in drive motors. About 1-2 Kg of REO equivalent is used in the manufacture of every hybrid car wherein they are also used in the manufacture of rechargeable batteries.

Restraint - Demand-supply outages and the rise of substitutable materials

As a result of this overdependence on a limited number of mining sites in these countries, any disruption to production often results in huge price fluctuations and challenges the availability to various sensitive end-uses. Environmental concerns, enactment of federal quotas and rising production costs often result in the closure of small mining sites in these countries.

This leads to the disruption of supplies and exports to key importing countries, which either rely on recycling or switch to substitutable materials. For instance, titanium and vanadium modified with nickel, chromium and manganese can be used as substitutable metals for rare earths in NiMH batteries.

Market Segment Analysis

The China rare earth metals market is segmented based on type, source, application and end-user.

Magnets in Rare Earth Metals Market is Expected to Dominate the Segment Driving the Growth.

The main rare earth magnets used in this context are the SmCo magnets and the NdFeB magnets. The magnets are widely used in military technologies, including precision-guided missiles and bombs in aircraft and warships, because of their high thermal stability. NdFeB magnets also find wide application in consumer electronics, automotive, air conditioning and electric vehicles. China is the leading consumer and supplier of NdFeB magnets, with the country remaining a key exporter of these magnets. Rare earth magnets are preferred in various applications about audio, video components, automobiles, military gear and communication systems because of their lightweight and high strength.

China will continue to dominate global markets, strengthen its supply chain and increase the use of rare earth in e-mobility with expected strong growth for NdPr oxide in Neodymium Iron Boron (NdFeB) magnets used in electric vehicle (EV) traction motors. Additionally, China, the largest automaker in the world, is focusing heavily on raising the production and sale of electric vehicles in the nation. To achieve this, the country has set production targets for electric cars (EVs) of 2 million annually by 2020 and 7 million annually by 2025. Furthermore, China has the world's greatest electronics manufacturing base.  The country not only meets domestic need for electronics, but also exports electronic products to other countries.

Sustainability Analysis

China dominates the global rare earth metals market, accounting for over 60% of global production and refining capacity. While these elements are critical for green technologies, electric vehicles (EVs), wind turbines and semiconductors, their extraction and processing pose significant environmental and sustainability challenges. Addressing these challenges is crucial for the long-term sustainability of the sector. Stricter environmental regulations in China, including carbon neutrality goals for 2060, are pushing for greener production methods. However, continuous innovation and regulatory enforcement will be necessary to balance economic growth with ecological preservation.

Major Global Players

The major global players in the market include China Rare Earth Holdings Limited, China Minmetals Corporation, TDK Ganzhou Rare Earth New Materials Co., Ltd., Xiamen Tungsten Co., Ltd., Chinalco Rare Earth & Metals Co., Ltd., JL MAG Rare-Earth Co., Ltd., Jiangxi Rare Earth & Rare Metals Tungsten Group, Guangdong Rising Rare Earth Industry Group, Shenghe Resources Holding Co., Ltd and China Northern Rare Earth (Group) High-Tech Company Limited.

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Target Audience 2024

Manufacturers/ Buyers

Industry Investors/Investment Bankers

Research Professionals

Emerging Companies