China Northern Rare Earth and Inner Mongolia Baotou Steel Union — two of China's top rare earth producers — announced a price hike for third-quarter 2025 rare earth concentrates to CNY19,109 (approx. US$2,665) per ton, excluding tax. The new rate reflects a 14.14% increase compared with the same period in 2024.
The increase follows a prior adjustment in April, when China Northern Rare Earth raised its second-quarter price to CNY18,825 per ton.
The announcement comes amid rising US-China tensions over rare earth supply chains. As critical inputs for high-tech and defense sectors, rare earths are now seen as strategic assets, and China's pricing moves are often interpreted as geopolitical signals.
China's dominance in rare earth production means price changes are closely watched as signs of upstream leverage. The latest hike suggests both rising demand expectations and Beijing's intent to retain pricing control over critical materials.
In response, the US is stepping up rare earth localization. The Department of Defense has pledged US$400 million in equity to MP Materials, which plans to build its second permanent magnet plant, the "10X Facility." The project has secured US$1 billion in financing commitments from backers, including J.P. Morgan and Goldman Sachs.
Slated for trial production in 2028, the 10X Facility aims to lift US magnet output to 10,000 tons per year. The Pentagon will take a 15% equity stake, making it the plant's largest shareholder, and has secured supplies of neodymium-iron-boron (NdFeB) magnets.
NdFeB magnets are vital to EVs, wind power, and defense technologies. Washington's move signals a push to cut reliance on foreign rare earths and further escalates its strategic rivalry with Beijing.
Article edited by Jack Wu
