Rare Earth Metal Prices Rise as China Imposes Export Restrictions
Rare earth metals are once again on the rise. According to calculations by the Bavarian Industry Association (vbw), their prices increased by 8% in May compared to April, driven by China’s export curbs.
Sharp Price Hike and Geopolitical Pressure
The price growth of rare earth elements far exceeded the general commodity index, which rose by only 0.8% in May. The steepest increases were seen in terbium (+19%), gadolinium (+17%), and samarium (+15%) — metals essential for electronics, automotive, and defense industries.
China, which processes around 90% of rare earths used globally, introduced export restrictions on selected elements in April. While these measures were aimed at the United States amid escalating trade tensions, European industries are also feeling the impact.
Growing Concerns Over Dependency on China
According to vbw’s CEO Bertram Brossardt, the ongoing trade conflict between the U.S. and China, intensified during Donald Trump’s presidency, plays a key role in this development. The export restrictions also affect critical components such as magnets used in high-end technologies.
The Federation of German Industries (BDI) recently warned of Europe’s growing reliance on China for critical raw materials. A similar situation occurred during the COVID-19 pandemic, when rare earth prices peaked due to disruptions in global supply chains.
Source: Czech Press Office
