China has implemented sweeping new regulations to tighten its control over rare earth minerals, expanding its quota system to include imported raw materials. This strategic move, announced on August 22, 2025, further consolidates China's grip on the global supply chain of these critical minerals energy transition and defense applications.

From August 15 to 19, the Pr-Nd market experienced a rare sharp rise — the average price of Pr-Nd oxide surged from 557,500 yuan/mt to 633,500 yuan/mt, a weekly increase of 13.6%; the average price of Pr-Nd alloy jumped from 677,500 yuan/mt to 772,500 yuan/mt, an increase of 14%. Tracing back to the beginning of the year, the cumulative increase in Pr-Nd oxide prices exceeded 40%, with the high pressure of prices continuously eroding the safety margin of the midstream of the industry chain. This article will explain from the demand side the intrinsic driving forces supporting whether this price can be sustained in the long term and the difficult situation of magnetic material and motor factories under the current price.

The global competition for critical minerals has reached unprecedented levels in 2025, with major powers implementing aggressive strategies to secure supply chains essential for clean energy technologies, defense systems, and advanced electronics.

SMM's monthly production data for base metals is released at the end of each month, aiming to uncover the true fundamentals for industry chain professionals and investors, and providing a clearer grasp of the future direction of the metals market.