U.S. Rare Earth Elements Market Reach to US174.8 Million by 2032

ATTAPULGUS, Ga. - June 23, 2025 - PRLog -- The United States rare earth elements market is experiencing significant expansion amid growing recognition of these materials' strategic importance to national security and technological advancement. With a market size of $85.5 million in 2024, the sector is projected to grow at a compound annual growth rate (CAGR) of 9.5% from 2025 to 2032, reaching $174.8 million by the end of the forecast period, representing more than a doubling of market value.

Strategic Importance in National Security

Rare earth elements comprise seventeen metallic elements that are indispensable to modern technology despite their relatively small market size in dollar terms. These materials enable the functionality of everything from smartphones and electric vehicle motors to military radar systems and precision-guided munitions. Their unique magnetic, catalytic, and optical properties make them irreplaceable in many high-technology applications.

Technology Applications Driving Demand

The clean energy transition serves as a major catalyst for rare earth elements demand growth (https://www.psmarketresearch.com/market-analysis/us-rare-...). Wind turbines utilize neodymium and dysprosium in permanent magnet generators that enable efficient electricity generation. Solar panels incorporate various rare earth elements in photovoltaic cells and inverter systems that convert sunlight into usable electricity.

Electric vehicle adoption creates substantial demand for rare earth permanent magnets used in traction motors, charging infrastructure, and battery management systems. As automotive manufacturers accelerate electrification programs, rare earth elements become increasingly critical to vehicle performance, efficiency, and reliability.

Domestic Production and Supply Chain Development

Historical rare earth mining operations in the United States have resumed and expanded, with existing facilities increasing production capacity while new projects advance through development stages. The Mountain Pass mine in California represents the primary domestic production facility, with ongoing investments aimed at expanding both mining and processing capabilities.

Government Policy and Support Initiatives

Federal legislation and policy initiatives provide frameworks for rare earth supply chain development, including funding for domestic production, research and development programs, and strategic stockpile management. The Defense Production Act and other national security authorities enable government support for critical materials development.

Department of Defense programs specifically target rare earth supply chain resilience, with contracts and funding supporting domestic production capabilities that serve defense requirements. These programs often provide anchor demand that supports project development and commercial viability.