United States Rare Earth Metals Market to Boom at about 10% CAGR During 2026–2032

Published | 12 January 2026

United States Rare Earth Metals Market is flourishing primarily due to a spurring demand for rare earth elements (REEs) from rapidly expanding end use industries, such as electric vehicles (EVs), renewable energy, and strategically important defense & aerospace, and the country’s increasing strategic focus on addressing national rare earth metals security.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated United States Rare Earth Metals Market size by value at USD 150.47 million in 2025. During the forecast period between 2026 and 2032, BlueWeave expects United States Rare Earth Metals Market to more than double its size at a significant CAGR of 9.73%, reaching a value of USD 288.13 million by 2032. The significant expansion of United States Rare Earth Metals Market is primarily driven by the country’s increasing focus on strengthening its strategic self-reliance and a surging demand for rare earth elements from the nation’s thriving electric vehicles (EVs) and renewable energy sectors. The United States government’s favorable policies and incentives, such as the United States Federal government’s allocation of approximately USD 440 million in 2025 through Department of Defense to build a complete domestic rare earth supply chain under the Defense Production Act, are projected to further boost the growth of United States Rare Earth Metals Market. As part of the global supply chain diversification to reduce its high reliance on China, United States is also forming partnerships with rare earth metals exporting countries.

Opportunity – Strategic Policies and Initiatives to Secure Rare Earth Metals

The U.S. government’s increasingly significant support through favorable critical mineral policies are projected to boost the growth of United States Rare Earth Metals Market in the coming years. United States currently holds an estimated 16% share of global rare earth mining production. However, the county’s revenue share in the global rare earth elements market is about 2%. China, on the other hand, dominates the global market with about 70% of market share, and controls about 90% of global earth elements supply chain. Hence, the U.S. federal government aims to reduce the country’s overreliance on China for critical minerals by encouraging to scale up  domestic production. For instance, MP Materials, one of the leading producers based in United States, announced in 2025 that it is increasing the commercial production  of integrated magnet in Fort Worth, Texas.

Sample Request:https://www.blueweaveconsulting.com/report/united-states-rare-earth-metals-market/report-sample

Impact of Escalating Geopolitical Tensions on United States Rare Earth Metals Market 

Escalating geopolitical tensions, particularly with China, could impact the growth of United States Rare Earth Metals Market. Increasing volatilities in political, military, trade, and economic conditions could significantly destabilize trade flows, supply chains, and investors’ confidence. Tariffs, sanctions, and trade restrictions, especially involving China, increase costs and limit access to rare earth metals. During these uncertain times, the government looks for securing the supply chain of rare earth metals for its mission critical sectors. The import-dependent countries, like United States, could be vulnerable to global shifts, while retaliatory measures threaten export competitiveness. Geopolitical, military, trade, and trade tensions force manufacturers to diversify sourcing and adopt risk-mitigation strategies, reshaping production dynamics.

Permanent Magnets Application Leads US Rare Earth Metal Market

The permanent magnets segment accounts for the largest market share of United States Rare Earth Metals Market by application, primarily due to their use in electric vehicles (EVs). The rapidly increasing adoption of EVs could further strengthen the segment’s market dominance. The other major application segment is catalysts. Rare earth elements are used as catalysts primarily in petroleum refining and automotive exhaust systems. Other applications includes battery alloys (NiMH), glass polishing, metallurgy, ceramics, and phosphors for displays.

Competitive Landscape

United States Rare Earth Metals Market is highly fragmented, with numerous players serving the market. Major companies dominating the market include American Rare Earths Limited, American Resources Corporation, Energy Fuels Inc., Idaho Strategic Resources, MP Materials Corp., NioCorp Developments Ltd, Rare Element Resources Ltd, Texas Mineral Resources Corp., Ucore Rare Metals Inc., and USA Rare Earth, Inc. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge over their competitors in United States Rare Earth Metals Market.

Don’t miss the business opportunity in United States Rare Earth Metals Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The report's in-depth analysis provides information about growth potential, upcoming trends, and United States Rare Earth Metals Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in United States Rare Earth Metals Market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

About Us

BlueWeave Consulting provides all-inclusive Market Intelligence (MI) Solutions to businesses regarding various products and services online & offline. We offer comprehensive market research reports by analyzing qualitative and quantitative data to boost your business solution's performance. BlueWeave has built its reputation by delivering quality inputs and nourishing long-lasting relationships with its clients. We are a promising digital MI solutions company providing agile assistance to make your business endeavors successful.

Contact Us:

BlueWeave Consulting & Research Pvt Ltd

+1 866 658 6826 | +1 425 320 4776 | +44 1865 60 0662

info@blueweaveconsulting.com