We happily return with our customary updates on the latest trends from the rare earth market. For several weeks, the cost per kg of nearly all rare earths has been steadily declining, reaching optimal levels from a couple of years ago. We attach, as an example, graphs showing the RMB/kg costs for the main rare earths Neodymium (PrNd), Dysprosium (DyFe), and Cobalt (Co).

This could be an opportunity to lock in these very advantageous prices by placing orders covering all of 2024 (and even extending to cover 2025), to take advantage of the excellent current prices and significantly reduce the impact of magnet prices on your finished products, whether they are motors or mechanical components for various applications.

Chinese New Year is approaching – it will be on February 10th, marking the beginning of the Year of the Dragon in China – resulting in the closure of all production activities for 2/3 weeks. Historically, after Chinese New Year, there are expected increases in raw materials and transportation costs due to the accumulation of demand during the closure.

Meanwhile, the USA and Europe continue their programs to identify strategic locations to build production sites for the processing and transformation of rare earths, especially Neodymium, in order to become increasingly independent from China. In December 2023, the Chinese government approved increasingly stringent regulations for the export of technology and machinery for rare earth processing. Conversely, the US government has introduced significant tax incentives to encourage the creation of domestic production sites. Currently, the areas where the new production sites will be located are as follows:

  • Sumter, USA
  • Fort Worth, TEXAS, USA
  • Narva, Estonia, Europe
  • Radewormwald, Germany, Europe
  • Ljubljana, Slovenia, Europe

Both public and private funds have already been allocated, and a partial implementation of these new production sites is expected to begin in spring 2025. If you wish to delve deeper into this topic, we refer you to the article HERE. We remain at your disposal for further information and await your forecasts for magnet purchases.

cabalt24 3 Rare Earth Trends: Chinese New Year and New Investments in Europe and the USA for Extraction
DYRON24 3 Rare Earth Trends: Chinese New Year and New Investments in Europe and the USA for Extraction
PRIND124 2 Rare Earth Trends: Chinese New Year and New Investments in Europe and the USA for Extraction