South Africa Rare Earth Elements Market

South Africa Rare Earth Elements Market Overview:

The South Africa rare earth elements market size reached USD 87.08 Million in 2024. The market is projected to reach USD 335.50 Million by 2033, exhibiting a CAGR of 14.44% from 2025-2033. increasing demand for rare earth elements used in electronics, magnets, and electric vehicles, as well as growing investments in the mining and processing industries to meet global demand for REEs, are significantly contributing to South Africa rare earth elements market share.

South Africa Rare Earth Elements Market Trends:

Rising Demand for Magnets in Electronics and EVs

The demand for rare earth elements (REEs), especially neodymium and dysprosium, is rising sharply due to the global push toward electric mobility and sophisticated electronics. These components are essential for creating high-performance permanent magnets that are used in hard drives, wind turbines, electric vehicle (EV) motors, and other electronic devices. Global EV production is projected to reach 20 million units by 2025, contributing to the growing use of magnets in electric motors. By creating domestic REE sources and processing capacity, South Africa is putting itself in a strategic position to take part in this value chain. Due to its resources and closeness to international markets, South Africa is a significant emerging player in the West's efforts to lessen its dependency on Chinese rare earth supplies. Growing production of EVs and expanding robotics and consumer electronics applications highlight how urgent supply chain diversification is. In the upcoming years, it is anticipated that investment in REE mining and processing in South Africa will increase quickly as demand increases.

Growth in Renewable Energy Technologies

The expansion of renewable energy infrastructure globally is heavily dependent on the availability of rare earth elements (REEs), particularly for components used in solar panels, wind turbines, and energy-efficient lighting. Elements such as Cerium, Lanthanum, Neodymium, and Praseodymium are essential in manufacturing photovoltaic cells, catalysts, and turbine generators. South Africa’s transition to a greener energy mix—driven by policy commitments to lower carbon emissions and improve energy resilience—has further increased the strategic importance of REEs. The demand is also being amplified by international investment in the country’s clean energy projects. In December 2023, South Africa's Phalaborwa Rare Earths Project secured $50 Million in funding from the U.S. Government’s International Development Finance Corporation to develop a rare earth processing facility. These advancements are a major factor behind the expansion of South Africa rare earth elements market growth.

South Africa Rare Earth Elements Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on application.

Application Insights:

• Magnets
• NiMH Batteries
• Auto Catalysts
• Diesel Engines
• Fluid Cracking Catalyst
• Phosphers
• Glass
• Polishing Powders
• Others

The report has provided a detailed breakup and analysis of the market based on the application. This includes magnets, NiMH batteries, auto catalysts, diesel engines, fluid cracking catalyst, phosphers, glass, polishing powders, and others.

Regional Insights:

• Gauteng
• KwaZulu-Natal
• Western Cape
• Mpumalanga
• Eastern Cape
• Others 

The report has also provided a comprehensive analysis of all the major regional markets, which include Gauteng, KwaZulu-Natal, Western Cape, Mpumalanga, Eastern Cape, and others. 

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

South Africa Rare Earth Elements Market News:

• September 2025: Rainbow Rare Earths announced that it has achieved a major breakthrough at its Phalaborwa project in South Africa, producing a high-purity mixed rare earth carbonate (MREC) of over 55% TREO, exceeding global industry standards. Using its in-house continuous ion exchange (CIX) process, Rainbow has enhanced recovery efficiency while reducing costs. The project, which extracts rare earths from phosphogypsum waste, is progressing toward final separation and feasibility stages. Rainbow aims to become a low-cost, near-term producer of both light and heavy rare earth elements.
• February 2025: Novare and ReElement Technologies partnered with a $100 Million (R1.8 Billion) investment to build Africa’s first rare earth and critical battery elements refining facility. Breaking ground in the second half of 2025, the facility will produce high-purity lithium carbonate, rare earth oxides, and other critical minerals using ReElement’s advanced chromatographic separation technology and locally sourced feedstock.

South Africa Rare Earth Elements Market Report Coverage:

Key Questions Answered in This Report:

• How has the South Africa rare earth elements market performed so far and how will it perform in the coming years?
• What is the breakup of the South Africa rare earth elements market on the basis of application?
• What is the breakup of the South Africa rare earth elements market on the basis of region?
• What are the various stages in the value chain of the South Africa rare earth elements market? 
• What are the key driving factors and challenges in the South Africa rare earth elements market?
• What is the structure of the South Africa rare earth elements market and who are the key players?
• What is the degree of competition in the South Africa rare earth elements market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the South Africa rare earth elements market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the South Africa rare earth elements market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the South Africa rare earth Elements industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.