How Rare Earth Pricing Works
Rare earth pricing works differently from copper or oil. There is no liquid futures market for rare earths outside China, so producers and buyers agree prices privately, usually by reference to assessments from price reporting agencies. That makes rare earth prices less transparent, and investors need to know which price a number refers to.
| Commodity | Liquid futures market? | Main price reference | Transparency |
|---|---|---|---|
| Copper | Yes (LME, COMEX, Shanghai) | Exchange futures prices | High |
| Lithium | Yes, smaller (CME, Guangzhou) | Price agency assessments and futures | Medium |
| Rare earths | No liquid futures outside China | Price agency assessments and Chinese spot platforms | Low |
Who Publishes Rare Earth Prices
Price reporting agencies survey producers, traders and buyers and publish assessments for the main rare earth products. The most widely used are Asian Metal, Argus Media, Fastmarkets and Shanghai Metals Market, most of which require a subscription. In China, rare earth spot trading platforms also publish prices. The USGS publishes free annual averages based on commercial assessments, which this site uses for its price charts.
How Rare Earth Contracts Work
- Term contracts. Producers sell much of their output to magnet makers, traders and manufacturers under contracts lasting months or years.
- Formula pricing. Contract prices are often linked to a published assessment, averaged over a period, with discounts or premiums for volume, purity and delivery terms.
- Offtake agreements. New projects often pre-sell future output to secure financing; the price terms strongly affect a project's economics.
- Spot sales. Smaller spot trades fill gaps and drive the assessments that contracts reference.
What Makes One Rare Earth Price Different From Another
- Element. Scarcer elements needed for magnets cost far more. USGS annual averages for 2025 were about $73/kg for neodymium oxide, $239/kg for dysprosium oxide and $1,010/kg for terbium oxide, while cerium and lanthanum sell for a small fraction of that.
- Product form. Metals and alloys cost more than oxides because of the energy and processing needed to reduce them. See oxides vs metals.
- Purity. Prices are quoted for a minimum purity, such as 99.5% for neodymium oxide; higher purity costs more.
- Location. Since China's April 2025 export licensing, some elements trade at much higher prices outside China than inside it. Always check whether a price is a Chinese domestic price or an export or European price (see China vs ex-China prices).
China vs Ex-China Rare Earth Prices
Rare earth prices now come in two tiers. Since China began licensing exports of several medium and heavy rare earths in April 2025, buyers outside China have paid much more than Chinese domestic buyers for dysprosium and terbium, while light rare earths such as NdPr have moved the other way. The gap depends on the element, the assessment and the delivery basis, so it is shown here as reported figures, not as a single number.
| Rare earth | China | Outside China | Gap | Source |
|---|---|---|---|---|
| Dysprosium oxide | $270 to $330/kg (FOB China) | $1,250 to $1,675/kg (Rotterdam) | About 4.9 times | Fastmarkets, 10 September 2026, as reported by Mining.com |
| Terbium oxide | Not stated in the report | Not stated in the report | About 3.8 times | Fastmarkets, 10 September 2026, as reported by Mining.com |
| Dysprosium oxide | DDP China | CIF Europe | About 16.3 times, up from 6.8 times at the end of Q2 | Benchmark Mineral Intelligence, Q3 2026 review |
| NdPr oxide | China DDP eased about 1% in Q3 | CIF Europe and North America fell more sharply, below $110/kg | Ex-China below its earlier level; no premium | Benchmark Mineral Intelligence, Q3 2026 review |
Sources: Mining.com citing Fastmarkets; Benchmark Q3 2026 Rare Earths Price Review. The two sources use different assessments, dates and delivery terms (FOB, DDP, CIF), which is why the dysprosium gap differs. Ex-China heavy rare earth markets are thin and prices are opaque, so treat the figures as indicative.
- Heavy rare earths (dysprosium, terbium, yttrium): ex-China supply is scarce and Chinese exports need licences, so buyers outside China pay a large premium. Benchmark describes ex-China heavy supply as acutely short of demand.
- Light rare earths (NdPr): light rare earths outside China are oversupplied according to Benchmark, so ex-China NdPr slipped below the $110/kg level of the price floors while the Chinese price eased far less. See NdPr oxide prices.
- What it means for floors: the Serra Verde floors for dysprosium ($575/kg) and terbium ($2,050/kg) sit below the reported Rotterdam dysprosium range, so the market price, not the floor, would set what that producer earns for dysprosium at the quoted levels.
- What to check: a company's revenue depends on which tier it sells into. Producers selling heavy rare earths outside China are exposed to the high tier, and producers selling NdPr to Chinese buyers to the low one. See China export controls for the licensing history.
Government Price Floors and Stockpiles
Governments outside China have started to support prices directly to keep new supply viable. In July 2025 the US Department of Defense agreed a 10-year price floor of $110/kg for MP Materials' NdPr oxide. In May 2026 Export Finance Australia issued a non-binding letter of support for possible Critical Minerals Strategic Reserve backing of up to 500 tonnes a year of NdPr oxide from Arafura's Nolans project. These arrangements can create a second, policy-supported price for non-China supply alongside the market price. See the NdPr oxide page for the benchmark and rare earth price floors explained for how they work and who holds one.
What Investors Should Check
- Which price a company or analyst is quoting: element, form, purity, and China or non-China.
- How a producer's contracts are priced, and whether any output is covered by a price floor.
- How much of a project's revenue depends on NdPr versus heavy rare earths or by-products.
- Whether price assumptions in a feasibility study are above or below recent assessments.
Rare Earth Pricing FAQ
Are rare earth prices different inside and outside China?
Yes. Since China introduced export licensing for several medium and heavy rare earths in April 2025, dysprosium and terbium oxide have traded at several times the Chinese domestic price outside China. Fastmarkets put the gap at about 4.9 times for dysprosium and 3.8 times for terbium in September 2026, while Benchmark reported a wider gap for dysprosium. NdPr is different: ex-China NdPr prices fell in the third quarter of 2026 while the Chinese price barely moved.
How are rare earth prices set?
Rare earth prices are set in private negotiations between producers and buyers, usually by reference to assessments published by price reporting agencies such as Asian Metal, Argus, Fastmarkets and Shanghai Metals Market. There is no liquid futures market for rare earths outside China.
Why are rare earth prices hard to track?
Rare earth prices are hard to track because most trades are private, volumes for many elements are tiny, and assessments require paid subscriptions. Since 2025, prices inside and outside China have also diverged for some elements, so a single quoted price can mislead.
What is a rare earth price floor?
A rare earth price floor guarantees a producer a minimum price for its output. In July 2025 the US Department of Defense agreed a floor of $110 per kilogram for MP Materials' NdPr oxide, paying the difference when market prices are lower. See the full guide to rare earth price floors for how they work.
Why is NdPr the most important rare earth price?
NdPr is the most important rare earth price because neodymium and praseodymium make up most of the value in a typical rare earth ore and are the key inputs for NdFeB magnets. Producer revenue and share prices track NdPr more closely than any other price.