US demand drives sharp increases in CIP global terbium, dysprosium prices
US Department of Defense sourcing restrictions that from January 2027 will prohibit procurement of samarium-cobalt and NdFeB magnets containing materials mined, refined, separated, melted or produced in China are driving increased demand and higher prices for dysprosium and terbium outside China. Fastmarkets assessments showed terbium oxide 99.99% cip global rose 41% to $5,000-8,000 per kg on Thursday from $4,200-5,000 per kg on September 24, while dysprosium oxide 99.5% cip global rose to $2,500-3,500 per kg from $1,910-2,500 per kg a week earlier, and ferro-dysprosium 80% cip global increased to $2,750-3,850 per kg from $1,375-2,100 per kg. Lynas announced on September 30 it will acquire Meteroric Resources for A$968 million, giving it access to the Caldeira project, which the company said could eventually produce 127 tonnes per year of the two heavy rare earths.
Why it matters: The developments illustrate the critical minerals theme: defence sourcing restrictions and export controls are accelerating efforts to build non-Chinese heavy rare earth supply chains.