According to Nikkei Asia on May 3, following China's announcement on April 4 to impose export controls on seven categories of medium and heavy rare earth-related items, the prices of rare earth metals reached record highs within weeks.
As of May 1, the price of European dysprosium has tripled since early April, reaching $850 per kilogram (approximately RMB 6180.6), while terbium prices have surged from $965 per kilogram (approximately RMB 7016.9) to $3000 per kilogram (approximately RMB 21814.1).
Based on data traceable back to May 2015, both have recorded the largest monthly increase and the highest prices.
In 2023, over 90% of refined rare earth materials globally came from China. On April 4, the Ministry of Commerce of China, in conjunction with the General Administration of Customs, released an announcement implementing export control measures on seven categories of medium and heavy rare earth-related items including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium, which took effect upon release. This move was seen as a countermeasure against the so-called "reciprocal tariffs" imposed by the Trump administration on China.
The report noted that rare earth metals are called "industrial vitamins," and even small amounts can improve material properties, making them crucial for manufacturing advanced products such as electric vehicles, wind turbine motors, and aircraft. The seven elements restricted by China belong to the rarer medium and heavy rare earths, and most of the global supply of these comes from China.
Tak Hiroshi, an analyst at Mizuho Bank's Industrial Research Department, said, "It is difficult to replace the restricted rare earths with materials produced by other countries."
The rise in heavy rare earth prices directly affects the cost of motors used in electric vehicles and other products. Takashi Okabe, a professor at the Institute of Industrial Science, University of Tokyo, said, "Long-term supply restrictions could make the production of entire electric vehicles unfeasible."
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Original source: https://www.toutiao.com/article/7500027658856694312/
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