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February 6, 2025
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6 minute read
Low rare earth prices squeezing profitability in China
Rare earth prices have been on a rollercoaster ride since 2020.
From an average of just $40/kg in Q1 2020, the price of NdPr oxide in China rocketed to an average of $140/kg in Q1 2022, markedly improving the profitability of China’s major light rare earth producers (and global price setters) from an industry average profit margin of 2% to 20%.
But it was not meant to be. In 2022, China issued a 25% increase in production quotas to producers in the nation via its first two directives.
