The Suit Magazine

In the past year, prices for rare earth elements have as much as tripled.  Neodymium, a soft silvery metal used in products such as headphones and hybrid electric cars, now costs producers $129 per pound, up from $42 a year ago.  The increase is being driven by a steady rise in demand for high-tech products such as smart phones and smart cars.  While the price increase will only minimally affect consumers, it will place severe financial strains on the producers of such technologies.

The price increase reflects a combination of a surge in buyers as well as turmoil in the industry responsible for the mining and refining of rare earths.  Additionally, China, which controls over 95 percent of the rare earth market, has implemented strong restrictions on the export of metallic elements, in order to conserve materials for their own technology industry.  

The U.S., the European Union, and Japan are currently discussing whether they will file a World Trade Organization case against China to challenge the nation’s export and quota duties.      

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