Report Overview

Increasing use of rare earth metals as critical elements in the strategically important end user industries, supportive policies and increasing incentives, the continuous high adoption of electric vehicles (EVs), and the thriving renewable energy are expected to boost the growth of United States Rare Earth Metals Market during the forecast period between 2026 and 2032.

United States Rare Earth Metals Market – Industry Trends & Forecast Report, 2032

United States Rare Earth Metals Market size was estimated at USD 150.47 million in 2025. During the forecast period from 2026 to 2032, United States Rare Earth Metals Market size is projected to grow at a CAGR of 9.73% reaching a value of USD 288.13 million by 2032. The expansion of United States Rare Earth Metals Market at a significant growth rate is predominantly driven by the nation’s rising 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.

  Source: BlueWeave Consulting

Rare Earth Metals – Overview

Rare earth metals consist of 17 elements (15 lanthanides, scandium, and yttrium) that have similar chemical properties. Rare earth elements are found abundantly in the Earth’s crust. They, however, are too hard for easy extraction, as they are not found in concentrated form for easy and feasible extraction. Rare earth elements have special magnetic and luminescent properties that are important for manufacturing high-performance magnets used in EV motors, direct-drive wind turbines, and advanced defense systems, including missile guidance and radar. China controls approximately 70% of mining and 85% of refining capacity. United States aims to reduce its dependence by diversifying its rare earth metals supply chain with new mining projects, strategic stockpiling, and advanced recycling technologies.

United States Rare Earth Metals Market 

Growth Drivers

Surging Demand for Permanent Magnets for Electric Vehicle Motors

Rare earth elements paly critical role in automotive, consumer electronics, renewable energy, petroleum refining, and defense & aerospace industries that are strategically important for any country in the world. Hence, United States focuses on the domestic mining and refining of rare earth metals. United States is rapidly adopting electric vehicles (EVs) with the significant regulatory, policy, and incentive support. As of January 2026, United States had about 5.5 million registered EVs. Going forward, EV sales are expected to continue to increase in United States. Rare earth elements are important in the production of permanent magnets in EV motors. As a result, automotive is the leading end use industry of United States Rare Earth Metals Market.

Challenges

Limited Manufacturing and Processing Capacity of Critical Minerals

Lack of technological expertise and processing infrastructure could affect the growth of United States Rare Earth Metals Market. The nation lacks the capacity of processing the huge reserves of rare earth metals. United States lacks the strategically critical processing of rare earth metal ore into alloys and high-performance magnets. Consequently, United States highly depends on China, the dominant player in the global rare earth metals value chain. To reduce its heavy reliance on other countries, United States has heightened its focus on diversifying its rare earth metals supply chain, through offering significant incentives for the domestic players and forming partnerships with other mineral rich countries across the regions.

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

Intensifying geopolitical tensions among countries, especially with China, the dominant country in the global rare earth elements market, across the regions could impact the growth of United States Rare Earth Metals Market by affecting global supply chains, increasing import costs, and creating trade uncertainties. Escalating volatilities in political, military, trade, and economic conditions could significantly destabilize trade flows, supply chains, and investors’ confidence. Tariffs, sanctions, and regional conflicts, 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.

United States Rare Earth Metals Market 

Segmental Coverage

United States Rare Earth Metals Market – By Element

United States Rare Earth Metals Market by element or metal type is segmented into Light Rare Earth Elements (LREE) and Heavy Rare Earth Elements (HREE). The LREE segment holds a larger market share of United States Rare Earth Metals Market by element, as LREEs are found in abundant monazite sand resources in United States. The LREE segment consists of Neodymium, Cerium, Lanthanum, Praseodymium, Samarium, and other LREEs. Among LREEs, Neodymium holds the largest market share. The HREE segment is comprised of Dysprosium, Terbium, Yttrium, Europium, Lutetium, Gadolinium, and other HREEs. United States mostly imports HREEs from other countries.

Source: BlueWeave Consulting

United States Rare Earth Metals Market – By Application

On the basis of application, United States Rare Earth Metals Market is divided into Permanent Magnets, Catalysts, and other application segments. The permanent magnets segment holds 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. 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.

Source: BlueWeave Consulting

United States Rare Earth Metals Market – By End Use Industry

Based on end use industry, United States Rare Earth Metals Market is divided into Automotive, Renewable Energy, Defense & Aerospace, and Consumer Electronics. The rapidly rising demand for EVs makes the automotive industry to increasingly use permanent magnets in their EVs. Rare earth metals are majorly used for making permanent magnets. Solar and wind energy segments of the renewable energy industry use rare earth elements for making wind turbines generators and solar energy infrastructure. The defense & aerospace players use rare earth metals in missile guidance systems, radar, and making high-strength alloys. Rare earth elements play critical role in smartphones, laptops, and lighting of consumer electronics industry.

Source: BlueWeave Consulting

Competitive Landscape

Major companies operating in United States Rare Earth Metals 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. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In November 2025 – MP Materials Corp. formed a new rare earth refinery partnership with the US Department of Defense (DoD) to “accelerate the build-out of an end-to-end U.S. rare earth magnet supply chain and reduce foreign dependency.” 

• In May 2025 – Maaden, a mining company based in Saudi Arabia, entered into an agreement with MP Materials Corp to explore opportunities to establish a fully integrated, end-to-end rare earth supply chain.

Scope of the Report

By Element

• • Light Rare Earth Elements (LREE)

    • Neodymium

    • Cerium

    • Lanthanum

    • Praseodymium

    • Samarium

    • Others 

• • Heavy Rare Earth Elements (HREE)

    • Dysprosium

    • Terbium

    • Yttrium

    • Europium

    • Lutetium

    • Gadolinium

    • Others

By Application

• • Permanent Magnets

  • Catalysts

  • Others

By End Use Industry

• • Automotive

  • Renewable Energy

  • Defense & Aerospace

  • Consumer Electronics