A McKinsey & Company report indicates the market demand for magnetic rare earth elements will triple by 2035. Although these elements constitute only 30% of total rare earth production, they currently represent the largest value segment of the rare earth market, accounting for 80%.

McKinsey predicts that by 2035, light rare earth elements will remain heavily reliant on China, while over 60% of heavy rare earth elements will continue to be mined in the Asia-Pacific region and processed in China. 

Given long lead times, significant environmental challenges, and high costs associated with developing new mining and processing capabilities, the recycling of secondary resources will become increasingly critical. Over 80% of rare earth element waste originates from applications in consumer electronics, household appliances, and internal combustion engine vehicles.