Summary:
Sustained Uptrend in Pricing
Prices have been increased for seven consecutive quarters since Q4 2024, signaling strong and persistent market demand.Tightening Supply-Demand Outlook
Forecasts suggest growing global supply deficits in rare earths (especially Pr-Nd oxide) from 2025 to 2028, supporting a long-term price uptrend.Strong Demand from Emerging Industries
Key growth drivers include:Electric vehicles
Humanoid robots
Low-altitude economy (e.g., drones)
Improving Profitability Across the Sector
China Rare Earth (600259.SH) expects 200%+ YoY profit growth, driven by higher prices and better operations.
Comment:
Rare earths are becoming increasingly strategic in today’s global economy.
China still dominates the supply chain, accounting for roughly 90% of global rare earth processing and supply, making it a critical player in this space.
In the U.S., MP Materials (MP.US) is currently one of the few companies capable of producing rare earth materials at scale. This highlights how concentrated and fragile the global supply chain still is.
What’s interesting is that rare earths are not truly “rare,” similar to oil.
The challenge lies in extraction and processing.
Mining rare earths involves:
heavy environmental impact
high regulatory barriers
complex chemical processing
Because of this, many countries are reluctant to expand production despite having reserves.
At the same time, there are very limited substitutes for rare earth elements in key applications such as:
electric vehicles
wind turbines
advanced electronics
This makes rare earths structurally important for future industries.
Disclaimer:
The above content reflects personal views and market discussion only. It does not constitute any investment advice or recommendation to buy or sell. Investing involves risk, and readers should make their own assessments and bear responsibility for their own decisions.