Why Is This Rare Earth Metal 346 Times More Expensive In America Than in China?
Chevron Profits Nearly Triple to $9.9 Billion Samarium sells for as much as346 times more in North America than in China, and that price is just a preview of what American industry would pay the day Beijing stops exporting.
Jet engines, industrial motors, EVs, wind turbines and medical scanners all run on rare earth magnets, and most U.S.
manufacturers still buy theirs from China, at Chinese prices.
Outside China,dysprosium costs five times as muchandyttrium more than 100 times as much.
Japan has already learned what happens when the Chinese supply slows:its government is asking Washington for helpbefore its yttrium runs out at year-end.
REalloys (NASDAQ: ALOY) is positioning itself to profit from one of the most serious shortages developing in America's rare earth supply chain, and it's a shortage that billions of dollars in new mining and magnet manufacturing investments won't solve on their own.
Washington has begun intervening to protect domestic production from Chinese price competition.
Under its10-year agreement with MP Materials, the Pentagon guarantees a minimum price of $110 per kilogram for NdPr, making up the difference when benchmark prices fall below that level.
The arrangement protects MP Materials against the price collapses that have historically threatened Western rare earth producers.
But in the meantime, investment in new mines and magnet factories is accelerating, creating an increasingly urgent question: who will supply the rare earth metals and alloys needed to connect the two? That's where REalloys is concentrating its efforts.
For magnet manufacturers, rare earth oxides first have to be reduced to metal, then melted with other materials and cast into the alloy strip that feeds the magnet line.
China controls more than 90% of the world's 210,000 tonnes of capacity for that step, according to Canaccord Genuity, whose analysts call metallization "a major blind spot in western supply chain development." The strip casters that make the alloy now take up to two years to deliver, and Canaccord's channel checks found that buying them from China is "impossible under current export controls." Canaccord expects magnet plant capacity outside China to more than triple to about 70,000 tonnes by 2030.
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