Rare earths: Overview
Magnets, catalysts, batteries and glass
What this tab covers What the commodity is used for, why, in what volumes and with what alternatives, and its chain from mine or field to end user. Also the latest price moves, top recent news, three things to know, and buttons into each tab.Key uses
| Use | Share | Annual volume | Why this commodity | Alternatives |
|---|---|---|---|---|
| Permanent magnets (NdFeB, SmCo) for EV motors, wind turbines, electronics and industrial motors | 29% | about 113,000 t REO a yearbasis | Neodymium-iron-boron gives the strongest magnetic field per kilogram of any commercial magnet, so motors can be smaller and lighter. Small additions of dysprosium and terbium keep magnets working at motor temperatures. Magnets take only about 29% of tonnage but most of the value: in the EU study 80% of neodymium and praseodymium and 90% of terbium go to magnets. Wood Mackenzie via Stockhead (2020 data); Roskill via Canadian Mining Journal (2021); EU CRM study 2023 (element end uses) | Ferrite magnets (cheaper, much weaker, larger motors) Induction and wound-rotor motors (no magnets, lower efficiency at partial load) Reduced-dysprosium grain-boundary diffusion magnets |
| Catalysts: fluid catalytic cracking (FCC) in oil refineries and car exhaust catalysts | 20% | about 78,000 t REO a yearbasis | Lanthanum stabilises zeolite cracking catalysts so refineries get more petrol from heavy oil; 60% of lanthanum goes to FCC catalysts in the EU study. Cerium oxide stores and releases oxygen in three-way autocatalysts; 60% of cerium goes there. Both are the cheapest, most abundant rare earths, so there is little cost pressure to substitute. Nkiawete and Vander Wal, TechConnect World 2024; EU CRM study 2023 | Non-rare-earth zeolite formulations (lower activity) Zirconia-based oxygen-storage materials (partial) |
| Polishing powders for glass, screens, optics and silicon wafers | n/a | n/a basis | Cerium oxide polishes glass by a chemical-mechanical action that is faster and gives a better finish than iron oxide or alumina. It is cheap because cerium is the most abundant rare earth and is produced in surplus alongside neodymium. The EU study puts 20% of cerium use in polishing. EU CRM study 2023; Wood Mackenzie via Stockhead (2020) | Alumina and zirconia abrasives Iron oxide (rouge) for low-grade polishing |
| Metallurgy and alloys: mischmetal, steel and cast-iron additives, NiMH battery alloys | n/a | n/a basis | Cerium and lanthanum bind sulphur and oxygen in molten steel and improve ductility. Lanthanum-nickel alloys store hydrogen in nickel-metal-hydride batteries, still used in hybrid cars. USGS lists mischmetal (65% Ce, 35% La) at about $5.62/kg in 2025, so these are low-value uses of surplus light rare earths. USGS MCS 2026 (prices); EU CRM study 2023 | Calcium and magnesium treatment in steel Lithium-ion batteries in place of NiMH |
| Glass, ceramics and phosphors (colouring, UV blocking, lighting, displays, lasers) | n/a | n/a basis | Cerium decolourises glass and blocks UV; neodymium and erbium colour glass; europium, terbium and yttrium phosphors give red and green light. Phosphor demand has fallen as LEDs replaced fluorescent lamps; the EU study now puts lighting at 0% of gadolinium and 10% of terbium use. EU CRM study 2023; USGS MCS 2026 | Other colourants and UV absorbers Quantum-dot and organic emitters in displays |
| Medical and specialist: gadolinium MRI contrast agents, lasers, fibre optics, defence electronics | n/a | n/a basis | Gadolinium's unpaired electrons make it the standard MRI contrast agent, taking 40% of gadolinium use in the EU study. Erbium amplifies signals in optical fibre; yttrium, neodymium and ytterbium dope industrial and medical lasers. Volumes are small but there are few or no substitutes. EU CRM study 2023; USGS MCS 2026 (Rare Earths, Heavy) | Manganese- or iron-based contrast agents (limited) Semiconductor lasers for some laser uses |
From mine to user
- 1. Exploration and mine development Deposits are carbonatites (Mountain Pass, Mount Weld, Bayan Obo), heavy-mineral beach sands with monazite (India, Brazil) and ion-adsorption clays (south China, Myanmar). Non-Chinese projects typically take a decade or more.
- 2. Mining and beneficiation Hard rock is crushed and floated to a mineral concentrate. Mount Weld ore reserves average 6.4% TREO (Lynas FY2025); Mountain Pass rock is roughly 8-10% rare earths (Scheyder 2024).
- 3. Cracking and leaching Concentrate is roasted with acid or treated with caustic to dissolve the rare earths, leaving iron, phosphate and radioactive thorium residues that must be managed. Clays are leached in place with ammonium or magnesium salts.
- 4. Separation by solvent extraction Hundreds of mixer-settler stages pull the 17 elements apart in a set order; cerium must come out before neodymium (Scheyder 2024). The EU study puts China's share of processing at 85% for light and 100% for heavy rare earths.
- 5. Oxides to metals and alloys Separated oxides such as NdPr oxide are reduced by molten-salt electrolysis to metal, then alloyed with iron and boron. Lynas has 10.5 ktpa of NdPr finished-product capacity in Malaysia (FY2025).
- 6. Magnet and component manufacture Alloy is milled, pressed in a magnetic field, sintered and coated into magnet blocks. India's 2025 scheme targets 6,000 tpa of sintered magnets across five makers (Union Cabinet, November 2025).
- 7. End users Magnets go into EV traction motors, wind generators, robots and electronics; oxides into refinery catalysts, autocatalysts, glass and polishing. Much of the rare earth content trades inside finished goods (USGS MCS 2026).
- 8. Recycling Mostly manufacturing swarf and a little end-of-life magnet recovery; the EU end-of-life recycling input rate is about 1% (EU CRM 2023).
Price movement snapshot 2026-10-25
No public daily or monthly benchmark price for this commodity in the datasets used.
World production 398k tonnes, 2024 Largest producer China 67.84% of world Reserve life 192 yrs reserves ÷ 2025 outputThree things to know
- In 2010 Molycorp told Congress its 17 rare-earth scientists faced about 6,000 in China (Scheyder, pdf p. 113).
- US imports of rare-earth compounds and metals rose 169% in 2025, yet their value fell to $165 million.
- China holds an estimated 44 million t of rare-earth reserves, more than half the stated world total of over 75 million t.
Top recent news snapshot 2026-10-25, last 30 days
- US holds secret Myanmar talks as rare earth minerals at stakeThe Times of India · 2026-10-16
- EU adds four rare earth projects to strategic list to support recycling, processing goalsFastmarkets · 2026-10-14
- US Firms Eye Malaysia Rare Earths in Push to Cut China RelianceBloomberg.com · 2026-10-14
- Malaysia’s rare earths balancing act: Raw exports or a homegrown processing industry?AL Circle · 2026-10-24
- Ionic Rare Earths submits Belfast recycling plant applicationMining Technology · 2026-10-14