China’s rare earth exports experienced a significant surge in 2024, reaching their highest point in 18 years. This increase signals a robust global demand for these critical materials, despite fluctuating prices. According to customs data, China exported 55,431 tonnes of rare earths in 2024. This is a 6% rise from the previous year. It is also the highest volume since 2006. This growth is primarily attributed to increased restocking activities by overseas buyers.
Price Fluctuations and the Impact of the EV Boom
Despite the surge in demand, the average export price for rare earths in 2024 decreased by 39% to $8,818 per tonne, compared to 2023. This price drop is likely due to factors such as increased spot supplies and a temporary slowdown in magnet demand. However, the long-term outlook for China’s rare earth exports remains positive. This is largely due to the burgeoning electric vehicle (EV) industry.
The rapid expansion of the global EV market, particularly the production of new energy vehicles (NEVs), has significantly boosted the consumption of magnetic materials and rare earth elements. As a dominant player in the NEV market, China produced a record-breaking 12.888 million NEVs in 2024. This is a 34% increase from the previous year, according to data from the China Association of Automobile Manufacturers (CAAM). This trend highlights the crucial role of rare earths in the global transition towards electric mobility.
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