The Rare Earth Market in 2025

Aljif7's Blog
Saturday 19 July, 2025
AREA: Finance

Since months ago I am trying to achieve this post about Rare Earth. And here we go.

Since 2019 China was leading the market.

Here we have a chart for 2021.

🌍 The Rare Earth Market in 2025: A Strategic Crossroads 🌍

Rare Earth Elements (REEs) are the unsung heroes of modern technology — powering everything from electric vehicles and wind turbines to smartphones and defense systems.

Yet, despite their critical importance, the global supply chain for REEs remains highly concentrated and geopolitically sensitive.

Current Market Snapshot (2025):

China continues to dominate, holding ~44 million tons of global reserves and accounting for over 80% of production.
Other major reserve holders include Vietnam (22M tons), Brazil (21M tons), and Russia (21M tons), though their production lags far behind.
Australia, USA, and Myanmar remain key producers, but geopolitical and logistical challenges are reshaping their roles.

🔍 Key Trends to Watch in 2025:

Supply Chain Diversification Accelerates
- The EU is ramping up efforts to localize production, spurred by Sweden’s discovery of Europe’s largest REE deposit.
- The U.S. is investing heavily in domestic mining and processing, with MP Materials and other firms expanding capacity.
- Japan and South Korea are deepening partnerships with alternative suppliers and investing in recycling tech.
Geopolitical Risk Remains High
- China’s control over processing infrastructure gives it outsized influence over global supply.
- Russia’s role is evolving due to sanctions, with increased focus on domestic use rather than exports.
- Myanmar’s output has declined due to political instability.
Sustainability and Recycling Gaining Momentum
- Environmental concerns are pushing for cleaner mining practices and urban mining (recycling REEs from e-waste).
- Research into alternative materials and rare-earth-free technologies is growing, especially in magnet and battery development.
Demand Surge from Green Tech
- The energy transition is driving record demand for REEs, especially neodymium and dysprosium used in EV motors and renewable energy systems.
- The IEA estimates that clean energy applications could account for over 70% of REE demand by 2040.

💡 Bottom Line:
The rare earth market is at a strategic inflection point. While China remains the dominant force, the global push for resilient, sustainable, and diversified supply chains is reshaping the future of this critical sector. And who knows if this dominance will give an advantage in Future development of technology.

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