Rare earths market turns volatile as US intervenes and China tightens control

The global rare earth metals market is undergoing a major market shift, as US price interventions, Chinese export restrictions, and surging demand disrupt supply chains and compel countries to rethink their strategies. 

In mid-July, the US took a bold step to challenge China’s dominance in rare earths. The Department of Defence signed a multi-billion-dollar deal with MP Materials, guaranteeing a minimum price of USD 110 per kilogram for neodymium-praseodymium (NdPr) oxide. This figure is almost double the prevailing China-based market price of around USD 60 per kilogram.