Export controls split the heavy rare earths market
Explore how China's export controls are reshaping heavy rare earth markets, driving price divergence and creating new supply chain risks.
China's export controls on heavy rare earth elements have fundamentally altered global market dynamics, creating a growing divide between Chinese and Western markets. This insight paper examines how restrictions on exports of key materials including yttrium, dysprosium and terbium have led to significant price divergence, tighter supply conditions outside China and increased geopolitical risk across critical supply chains. It also explores the long-term outlook for demand, supply and pricing as industries such as electric vehicles, offshore wind and advanced robotics drive continued growth in rare earth consumption.
Key points covered in this paper
- How China's export controls have split the market
Analysis of the emergence of a two-tier market for heavy rare earths, separating licensed and non-licensed buyers.
- Supply chain pressures outside China
Assessment of tightening material availability for defence, aerospace and industrial consumers reliant on non-Chinese supply.
- Supply diversification beyond China
Evaluation of emerging rare earth projects and the potential for ex-China production to reduce market concentration.
- Which elements face the greatest supply risk
Outlook for critical materials including dysprosium, terbium, yttrium, neodymium and praseodymium.
- Navigating future market volatility
Understanding the long-term implications of export controls, pricing bifurcation and evolving supply chains.
Read the full insight to learn more.