More than a year after China implemented export controls on rare earths, some prices have surged eightfold. The price of dysprosium in the European market has reached $2,250 per kilogram, an eightfold increase compared to April of last year, according to Nikkei Asia on July 23. Dysprosium is used in permanent magnets for electric vehicle motors, wind turbines, and military radar systems.
The price of terbium, another rare earth material that enhances the heat resistance of electric vehicle motors, has also increased fivefold during the same period.
China enacted its rare earth export control policy in April of last year, allowing only companies with export permits to ship these materials. The controlled rare earths include samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium.
As a result of China's export controls, international rare earth prices rose last year. Additionally, the intensification of export restrictions on rare earths to Japan earlier this year has exacerbated supply shortages, leading to a sharp increase in international prices. Japanese companies have particularly struggled to source rare earths in Europe, where supply shortages have become more pronounced.
In contrast, rare earth prices within China have not increased, remaining at levels similar to early last year due to sufficient domestic supply.
Meanwhile, China's exports of rare earth magnets to Japan totaled 128 tons last month, a 2% decrease from the previous year. Following comments from Japanese Prime Minister Sanae Takaichi suggesting intervention in the event of a Taiwan crisis, China has prohibited the export of dual-use goods to Japan since January. Rare earths are considered a key dual-use material.
* This article has been translated by AI.
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