The Rare Earths Powering the Next Wave of Robotics

The expansion of robotics could create a durable new source of demand for rare earths, while China’s dominance of refining and magnet manufacturing makes supply-chain diversification strategically important.

• Morgan Stanley projects annual robot sales to rise from an estimated 29 million units in 2026 to 1.4 billion by 2050; the global operational stock of industrial robots reached 4.6 million at the end of 2024 and could approach 40 million by 2040.
• Rare earth permanent magnets enable compact, powerful and precise robotic motion, while rare earths also support sensors, fiber optics, navigation systems, displays and electronic controls. Permanent magnets represent more than 80% of global rare earth demand by value.
• Humanoid robots may contain multiple times more magnetic material than an electric vehicle, and advanced industrial and humanoid robots could require approximately 1–3 pounds of rare earth elements for their permanent magnets.
• The humanoid robot market is projected to grow from roughly $3 billion today to approximately $38 billion by 2035; medical robot installations rose 91% in 2024, while Asia accounted for 74% of new industrial robot deployments.
• China accounted for 91% of global refined magnet rare earth output and 94% of sintered permanent magnet production in 2024. In June 2026, the U.S. government committed nearly $2.9 billion to rebuild a rare earth metals and permanent magnet supply chain outside China.

Takeaway: Robotics growth could strengthen long-term demand for rare earths, but investors must also consider the lengthy, capital-intensive process of building mine-to-magnet capacity outside China and the resulting supply-chain risks.