Rare-earth prices triple to new records on China export curbs...

Rare-earth prices triple to new records on China export curbs
SHUGO YAMADA
May 3, 2025 00:41 JST

Trade war with US squeezes supply of key materials for EVs and more

TOKYO -- Prices of rare-earth metals have reached record highs in the weeks since China clamped down on exports of the key materials used in electric vehicles, wind turbines and other items amid a tit-for-tat trade war with the U.S.
The price of dysprosium in Europe -- the benchmark for the material outside China -- tripled from the start of April to $850 per kilogram as of Thursday, according to Argus Media. Terbium increased to $3,000 per kilogram from $965.
Both logged the largest monthly rises and the highest prices in data going back to May 2015.

The Chinese government on April 4 announced restrictions on exports of seven rare-earth metals, including terbium and dysprosium -- a move widely seen as retaliation against the "reciprocal" tariffs announced by U.S. President Donald Trump.
Chinese exports of rare-earth metals are believed to have been halted immediately afterward, according to Argus.
Rare-earth metals are sometimes called "industrial vitamins," since they can improve the functionality of the materials they are added to in even small amounts. They are critical to manufacturing such advanced products as EVs, wind turbine motors and aircraft.
The seven elements affected by China's curbs are classified as medium and heavy rare earths. They are less commonly available than light rare earths, and China is responsible for the majority of their global supply.
"It's difficult to replace the restricted rare earths with materials produced in other countries," said Takahiro Sato of Mizuho Bank's Industry Research Department.
The rising prices of heavy rare earths directly affect the cost of motors used in EVs and other products. "Protracted supply constraints could make EV production impossible as a whole," said Toru Okabe, a professor in the Institute of Industrial Science at the University of Tokyo.
The scarcity of rare earths has factored into U.S. ties with Ukraine as well, with Trump expressing interest in Ukrainian resources. The countries this week signed an agreement to jointly develop energy and mineral resources in Ukraine.