Rare earths price rally highlights China’s influence on market

Domestic Chinese praseodymium‑neodymium (PrNd) oxide prices have rallied in recent weeks to around $125/kg, the highest they have been since 2022, pushing up prices outside the country. Alongside this, China’s increased export controls on heavy rare earths exports to China are tightening ex-China supply, widening regional bifurcation. China’s dominance across mining, separation and magnet production mean international buyers typically price against Chinese benchmarks. As a result, policy decisions on quotas or export controls from China have a significant impact on the global market. As such, Western consumers remain price‑takers in rare earths markets where liquidity, transparency and alternative supply remain limited. This exposes manufacturers, particularly in electric vehicles, wind turbines, defence systems and high‑efficiency motors, to sudden input cost volatility originating from policy shifts within China.