Rare earth prices hit two-year peak after MP Materials stops China shipments

By Eric Onstad and Amy Lv

LONDON/BEIJING (Reuters) -Prices of two rare earth elements needed for super-strong magnets have surged to their highest in more than two years after U.S. miner MP Materials stopped raw material exports to leading magnet maker China amid rising demand.

China dominates the global supply chain for rare earths, accounting for 90% of refining capacity and around 70% of mined output, but the U.S. has pushed back, signing a deal with its biggest producer MP in July to refine its output domestically.

MP’s shipments had in the past three years fed 7%-9% of China’s oxide production from mine output of rare earths neodymium and praseodymium (NdPr) – vital to magnets that power electric vehicles, wind turbines and defence equipment – consultancy Adamas said.

“MP’s shipme