China Restricts Exports, Sending Rare Earth Prices Soaring

According to the latest reports, rare earth metal prices have surged to record highs within weeks of China's announcement of export controls on seven categories of medium and heavy rare earth-related items. By May , the price of dysprosium in Europe had doubled since early April, reaching ‌850 per kg, while terbium prices soared from $965 per kg‌ to ‌$3,000 per kg‌—a cumulative increase of ‌over 210%‌.

Rare earth metals, dubbed '‌industrial vitamins‌,' are non-renewable strategic resources critical for applications in new energy, advanced materials, energy conservation, environmental protection, aerospace, military-industrial sectors, and electronic information technologies. The seven restricted elements—classified as rarer medium-to-heavy rare earths—constitute the majority of global supply, predominantly sourced from China.

Analysts suggest that overseas markets will face rare earth shortages following China's export restrictions. Short-term prices abroad are expected to exceed domestic levels, with a convergence anticipated mid-term; overall, global rare earth prices will trend upward persistently.