China rare earth export controls send prices soaring

China's rare earth export controls, imposed on April 4, 2025, have triggered dramatic price surges in key elements. Yttrium, used in defense, aerospace, and chipmaking, has skyrocketed 14,000% to ~$1,100 per kilogram. Terbium, essential for permanent magnets in EVs and wind turbines, surged 350% to ~$4,500/kg, while dysprosium, used in electric motor and defense magnets, rose 450% to ~$1,450/kg.

The controls, requiring export licenses for seven rare earth elements including terbium, dysprosium, and yttrium, were imposed in retaliation for US tariff increases. Export volumes have plunged: yttrium down 50%, dysprosium down 60%, and terbium down 50% compared to the 12 months before the restrictions.

The price spikes highlight the market impact of China's dominant position in rare earth processing and its willingness to use export controls as a geopolitical tool.