Rare Earth Prices Surge as US-China Supply Chain Tensions Escalate

NdPr oxide prices have jumped 40% since July to $88/kg, reaching a two-year high after MP Materials halted shipments to China. The US-based miner previously supplied 7%-9% of China's NdPr feedstock—a critical component for high-performance magnets in EVs, defense systems, and renewable energy infrastructure.

Washington's strategic intervention, including a $110/kg price floor agreement with MP Materials, accelerates Western efforts to break Beijing's stranglehold on rare earths. China currently controls 90% of global refining capacity and 70% of mining output for these strategic materials.

The supply shock comes amid escalating trade tensions, with China restricting rare earth exports in April—a MOVE that temporarily idled automotive plants. Market analysts note the price surge could revive dormant mining projects outside China as nations prioritize supply chain sovereignty.