Red mud (RM), the primary waste product of the aluminium industry, is notable for its high concentrations of metals and rare earth elements (REE). Efforts have been made to develop extraction methods for REE recovery from RM, aiming to enhance its valorisation and reduce the European reliance on external REE sources—particularly crucial for technological advancements and the transition to renewable energy. However, these methods have only been limited to low technology readiness levels (TRLs), with no economically or technically viable processing routes yet defined to enable large-scale industrialisation within a circular economy model. This study characterised RM samples from the Seydişehir region in Türkiye using different techniques and explored the experimental process for recovering metals and REE. Moreover, the study assessed the global prospective potential of RM based on technical and economic data, as well as the sustainability of the implemented process through the life cycle assessment (LCA) tool. Results showed a total REE concentration of up to 1600 ppm, with Ce, being the most abundant (426 ± 27 ppm), followed by La, Nd, and Sc. Concentration efficiencies for La and Nd ranged between 240–300%. Sc, Y, Ce, La, and Nd have significant usage in European markets and represent prime RM targets for further prospecting. The LCA revealed that the highest global warming potential of the sequential extraction process was attributed to hydroxylamine hydrochloride and hydrogen peroxide. The findings highlight the need to explore alternative, more eco-friendly reagents to improve RM valorisation.