RARE EARTH PRICES SOAR IN Q3 AS CHINA TIGHTENS EXPORT CURBS

Fri 07 November 2025:

Critical minerals essential for smartphones, wind turbines, chips, and defense systems saw sharp price spikes in the third quarter, driven by Beijing’s stricter export controls, according to the Bavarian Industry Association’s monthly commodity report.

Their prices in US dollars rose by 8.2% compared to the previous quarter, according to the latest edition of the vbw’s monthly raw materials price index. This continued the trend of previous months, with rare earth prices already rising by 8.9% in the second quarter.

“We urgently need to reduce our dependencies, especially on China,” said vbw chief executive officer Bertram Brossardt.

While the Chinese leadership has suspended export restrictions following a meeting between President Xi Jinping and US President Donald Trump, there is still no agreement in the trade conflict between the world’s two largest economies.

China in April announced new export controls on seven rare earths in response to tariffs threatened by Trump. It then announced further tightening in October.

According to estimates, almost two-thirds of the world’s rare earths are mined in China, and 90% are processed for industrial use. Prices reached record highs in early 2022 during the Covid-19 pandemic, when global supply chains were severely disrupted.

According to the vbw raw materials price index, precious metals such as gold, silver and platinum also became significantly more expensive in the third quarter, with a price increase of 12.6%.

“This reveals the current uncertainty,” said Brossardt. “Investors are increasingly looking for seemingly safe investments, such as gold.”

Rare earths aren’t rare—they’re 17 obscure metals scattered in Earth’s crust, but super hard to extract cleanly. China controls 85% of refined supply, giving it tech chokehold power.

Top uses?

Magnets: Neodymium + praseodymium make the world’s strongest permanent magnets—inside every EV motor (Tesla needs ~10 kg/car), wind turbine, and hard drive.

Batteries: Lanthanum and cerium boost NiMH cells in hybrids; emerging solid-state tech wants more.
Displays & LEDs: Europium and terbium create red/green phosphors for your phone screen and TV.
Defense: Yttrium stabilizes F-35 jet coatings; samarium powers precision-guided missiles; erbium amplifies fiber-optic comms.
Catalysts: Cerium scrubs car exhaust and cracks oil in refineries.

An iPhone 6 was estimated to contain around 0.24 grams of REEs, according to analysis of Apple’s data at the time.

No substitutes match their magnetic, optical, or catalytic tricks. That’s why the US, EU, and Japan are racing to mine in Australia, recycle e-waste, and stockpile—because whoever controls rare earths controls tomorrow’s tech.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

__________________________________________________________________________

FOLLOW INDEPENDENT PRESS:

WhatsApp CHANNEL
https://whatsapp.com/channel/0029VaAtNxX8fewmiFmN7N22