Overview

• Bavarian industry paid nearly 9% more for rare earths in Q2 than in Q1 according to vbw data, largely due to Chinese licensing delays and tighter export controls.
• Key elements saw steep price hikes with terbium up 28%, yttrium rising 17% and gadolinium increasing 15%, while gold advanced 15%.
• The vbw raw material price index fell 4.1% in Q2, driven by a 6.9% drop in aluminium, a 13.5% decline in lithium and an 11.5% fall when energy costs are included.
• vbw chief Bertram Brossardt cautioned that sustained volatility from China’s export quotas threatens electric vehicle and wind turbine production without greater supply stability.
• German industry bodies and European Commission officials, including Maroš Šefčovič, are calling for faster permit approvals, investment in new mining and processing facilities, and expanded recycling to cut China dependency.