Neodymium-praseodymium, a key rare-earth metal used in EV batteries and wind turbines, just reached record prices since 2023. This increase comes as the U.S. has been forced to protect its own resources amidst the escalating U.S./China trade war. Prices have exploded, in part a consequence of Chinese export limitations on specific rare-earth minerals. This state of affairs has driven up global demand for neodymium-praseodymium, particularly in the booming electric vehicle (EV) market.
MP Materials, the primary extractor of neodymium-praseodymium, operates the Mountain Pass mine in California, the only rare-earth mine in the United States. Today, this mine is an important and strategic source of neodymium-praseodymium. These materials are critical in producing electric motors, wind turbines and an array of other high-tech, advanced applications. As higher prices underscore this scarcity – compounded by geopolitical factors – bolstering domestic supply is a bipartisan imperative. They reveal a developing race to secure access to these essential resources.
This recent spike in prices is especially remarkable as it widen past the close minerals impacted by the Chinese export restrictions. Analysts would say that increasing prices of neodymium-praseodymium represents a larger trend hitting the entire rare earth market. These materials are critical for US manufacturers looking to build cutting edge technologies and stay competitive in an increasingly high demand market.
The United States has recently woken up to the strategic importance of securing neodymium-praseodymium resources. MP Materials is in the process of increasing its extraction capacity at the Mountain Pass mine. This enabling action will put the U.S. back in the driver’s seat on globally keeping smart regulation from limiting U.S. competitive advantage. The company has set a bold vision to “Future Proof” their supply chain. This move fits into a wider international pattern, with countries around the world racing to ensure their own supplies of rare-earth metals.
Global demand for neodymium-praseodymium is increasing, now mostly fueled by the growing global electric vehicle manufacturing sector. Large and intricate EV battery systems Manufacturers of battery-electric vehicles (EVs) depend on this rare-earth metal for their battery systems and electric motors. Climate change impacts and increased awareness of equity, environmental, and health benefits of electrification are driving more consumers to choose electric vehicles. Therefore, the upcoming demand for neodymium-praseodymium is expected to explode even further.