Rare Earth Prices Surge: Gadolinium, Holmium, and Yttrium See Significant Increases

[SMM Rare Earth Flash] US critical minerals producer Energy Fuels (NYSE American: UUUU) recently announced that it has signed a definitive agreement with private equity firm Ara Partners to acquire Vacuumschmelze (VAC), a century-old German magnetic material enterprise, for approximately $1.9 billion. The transaction is expected to close in early 2027. VAC’s existing Sumter plant in South Carolina, US, has a permanent magnet capacity of 2,000 mt per year, expandable to 12,000 mt per year. The acquisition combines VAC’s downstream magnetic material manufacturing with Energy Fuels’ upstream rare earth mining and separation assets, as well as the metal capacity from the planned acquisition of Australian Strategic Materials (ASM), creating the first rare earth platform in the West that spans the entire supply chain from mining to finished magnets. VAC will retain its German headquarters and brand.

[SMM Rare Earth Price Flash] Affected by multiple factors, prices of Pr-Nd and gadolinium products saw significant increases. As of 11:00 today, the Pr-Nd oxide price range was 748,000-752,000 yuan/mt, up 22,000 yuan/mt from yesterday morning. Among them, transactions were continuously concluded at 749,000-750,000 yuan/mt, with the highest quoted price at 755,000 yuan/mt. The gadolinium oxide price range was 215,000-220,000 yuan/mt, up 8,500 yuan/mt from yesterday morning, with transactions continuously concluded at 217,000-218,000 yuan/mt, and an inquiry price at 215,000 yuan/mt. The Pr-Nd alloy price range was 910,000-920,000 yuan/mt, up 30,000 yuan/mt from yesterday morning. The gadolinium iron price range was 205,000-210,000 yuan/mt, up 10,000 yuan/mt from yesterday morning. According to SMM, the sharp rise in Pr-Nd prices today was mainly driven by the rapid increase in Pr-Nd oxide futures prices. Suppliers showed weak willingness to sell at low prices. Meanwhile, large downstream magnetic material manufacturers entered the market to tender for Pr-Nd alloy, providing demand support for the price increase. Gadolinium product prices were mainly boosted by the rise in Pr-Nd product prices, and suppliers raised their quotes.