Rare Earths MMI: Prices Stabilize, but Supply Chains Still Disrupted by China’s New RE Restrictions

The Rare Earths MMI (Monthly Metals Index) found more price stability month-over-month. As a result, it moved sideways, with only a 0.81% increase. Despite this, the short-term outlook for rare earths remains uncertain. Chinese export restrictions jolted prices in H1 of 2025 and fractured long-running supply lines. Shortly after, global automakers warned that Beijing’s April curbs on alloys and magnet exports “could cause production delays” without fast relief.

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China’s Rare Earths Shockwaves Continue to Jolt Global Markets

Chinese market data show how wild things got in May. According to China Tungsten Industry charts, Chinese rare earth prices jumped sharply in early May before easing later in the month. For example, after a brief rally, neodymium-praseodymium metal was about $4,176.53/ton higher. Overall, May’s closing prices were slightly above April levels. 

China’s policy shock continues to be felt worldwide. The export bans target medium-heavy rare earths used in EV motors, wind turbines and high-tech weapons. One industry report said the restrictions “triggered a ripple effect” through global EV and clean-energy supply chains.

According to Reuters, the country still mines roughly 60% of the world’s rare earths and refines ~90% of them, making it the undisputed supply giant. MP Materials, the U.S.’s only large rare-earth miner, warned the situation is “broken,” and that China’s moves will force a laser focus on American supply security.

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Trade Truce or Temporary Fix?

Throughout 2025, U.S. buyers have scrambled for solutions. After a G7 trade “truce” in mid-May, Washington pressed Beijing to ease restrictions, and Reuters sources say China may now fast-track export licenses for U.S. customers. Still, complete relief isn’t assured. Meanwhile, suppliers are sounding the alarm, warning that electric vehicles, defense and renewable energy are all in the crosshairs.

Permanent magnets are vital in EV motors. In fact, a single electric car can require several kilograms of neodymium and dysprosium. In aerospace and military manufacturing, the stakes are even higher. For instance, the F-35 fighter consumes roughly 900 pounds of rare-earth magnets, while a Virginia-class submarine requires over 9,200 pounds. Wind turbines and satellite systems also rely heavily on these materials.

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Prices on Edge: U.S. Buyers Brace for a Volatile Summer

Rare earth element prices will likely experience continued instability over the next few months due to persistent supply challenges and rising geopolitical friction. China’s tightening of export controls on crucial materials like neodymium and praseodymium has caused significant ripples throughout global supply chains. These disruptions are hitting U.S. sectors especially hard, particularly those tied to electric vehicles, wind energy and national defense.

For U.S procurement teams, this landscape highlights the need to both diversify supply channels and support the development of domestic production. Rare earth companies are expanding output, but that effort won’t solve short-term shortages. In the meantime, decision-makers should stay alert to evolving market conditions and consider building up inventory as a buffer against future shocks. Regularly consulting trustworthy market data and industry insights will be essential to making informed sourcing decisions during this volatile period.

Many procurement teams have shifted strategies overnight. Manufacturers are diversifying suppliers, boosting recycling of old magnets and even redesigning products to use fewer heavy rare earths. For example, EU firms are planning magnet recovery from scrap batteries and turbines, while the EU government recently identified 13 new mining projects outside China to shore up supply.

Rare Earths MMI: Noteworthy Price Shifts

Struggling with unpredictable metal prices disrupting your budget? Download MetalMiner’s Monthly Metals Index report to gain insights into the latest price trends across 10 metal industries, helping you stabilize your financial planning.

• Praseodymium oxide prices moved sideways, rising 2.19% to $64,004.55 per metric ton.
• Cerium oxide prices dropped significantly, falling 7.67% to $1,530.15 per metric ton.
• Neodymium prices moved sideways, dropping a slight 0.41% to $75,113.77 per metric ton.
• Lastly, terbium metal prices moved sideways, rising by 1.63% to $1,235.09 per metric ton.