China's Rare Earth Exports Hit 18-Year High in 2024 Driven by Strong Demand

China's Rare Earth

Increased Overseas Restocking Drives Export Growth Amidst Fluctuating Prices

China's rare earth exports surged to their highest level in 18 years in 2024, reaching 55,431 tonnes. This represents a 6% increase from 2023 and marks the highest export volume since 2006, according to Chinese customs data. This growth was primarily fueled by robust restocking demand from overseas buyers.

Market Dynamics and EV Sector Influence

Despite the increased demand, the average export price for rare earths in 2024 fell to $8,818/t, a 39% decrease from 2023. This price decline can be attributed to several factors, including ample spot supplies and a slowdown in magnet demand. However, the long-term outlook for China's rare earth exports remains positive, driven by the growing demand in sectors such as the burgeoning electric vehicle (EV) industry.

The rapid expansion of the global EV market, particularly the production of new electric vehicles (NEVs), significantly boosted the consumption of magnetic materials and rare earth feedstocks in 2024. China, a dominant player in the NEV market, produced a record 12.888 million NEVs in 2024, a 34% increase from the previous year, according to the China Association of Automobile Manufacturers (CAAM).