Investors often ask which are the most profitable rare earths, as if one element could be bought like a stock. In practice, nobody mines a single rare earth, so price per kilogram answers only part of the question. The dated table below gives the latest prices.
Table of Contents
Which rare earths are the most valuable?
By price per kilogram, heavy rare earths such as terbium and dysprosium sell for far more than neodymium or praseodymium oxide, as the table shows, and far more than lanthanum or cerium. Neodymium and praseodymium are produced in much larger volumes. They go into permanent magnets, which the U.S. Geological Survey (USGS) estimates are the leading global use of rare earths. That large market is why most mine plans are built around neodymium-praseodymium (NdPr), with the heavy elements adding value where the ore carries them.
| Oxide (minimum purity) | 2021 | 2022 | 2023 | 2024 | 2025e |
|---|---|---|---|---|---|
| Terbium oxide (99.99%) | 1,340 | 2,050 | 1,300 | 812 | 1,010 |
| Lutetium oxide (99.99%) | 811 | 814 | 829 | 780 | 888 |
| Dysprosium oxide (99.5%) | 410 | 382 | 330 | 257 | 239 |
| Praseodymium oxide (99.99%) | 93 | 128 | 76 | 56 | 74 |
| Neodymium oxide (99.5%) | 98 | 134 | 78 | 56 | 73 |
| Holmium oxide (99.5%) | 140 | 180 | 91 | 67 | 70 |
| Neodymium-praseodymium (NdPr) oxide (99%) | 92 | 124 | 75 | 55 | 69 |
| Erbium oxide (99.5%) | 36 | 53 | 41 | 43 | 46 |
| Gadolinium oxide (99.99%) | 47 | 75 | 47 | 28 | 30 |
| Europium oxide (99.99%) | 31 | 30 | 27 | 27 | 27 |
| Ytterbium oxide (99.99%) | 15 | 14 | 13 | 14 | 15 |
| Yttrium oxide (99.999%) | 6 | 12 | 8 | 6 | 9 |
| Samarium oxide (99.5%) | 2.03 | 3.34 | 2.17 | 2.01 | 2.82 |
| Cerium oxide (99.5%) | 1.54 | 1.45 | 1.03 | 1.21 | 1.71 |
| Lanthanum oxide (99.5%) | 1.51 | 1.39 | 0.96 | 0.97 | 1.00 |
Why is price per kilogram a poor way to rank rare earths?
The value of each ton of oxide a deposit sells is the sum of each element's share multiplied by its price. Even a small share of dysprosium and terbium can raise it sharply. That value is realized in full only if a plant can separate those elements, the product meets a buyer's impurity limits and a buyer will pay for it. A project selling unseparated concentrate is paid only a fraction of that value.
Neodymium and praseodymium: the magnet core
Neodymium-iron-boron magnets drive electric vehicle motors, wind turbine generators, industrial robots, speakers and hard drives. Neodymium and praseodymium are usually sold together as NdPr oxide because they occur together, are costly to separate and largely substitute for each other in the magnet. Their price has swung sharply from year to year, as the table shows, which is why project economics quoted at a peak price deserve a second look. See our neodymium guide for uses and supply.
Dysprosium and terbium: heat-resistant magnets
Adding a little dysprosium or terbium lets a magnet keep its strength at the high temperatures inside a traction motor or a missile actuator. Both come mainly from ion-adsorption clays and a few hard-rock deposits. The United States depends heavily on imports of heavy rare earth compounds and metals, according to USGS. China has placed export controls on both elements and issues licenses to selected exporters. When Chinese exports are licensed, buyers outside China can pay well above the benchmark prices in the table.
Europium, gadolinium, yttrium and samarium: specialist markets
Europium activates the red phosphor used in displays and lighting. Gadolinium is used in MRI contrast agents and some magnet alloys. Yttrium stabilizes zirconia ceramics and goes into phosphors and lasers. Samarium is the rare earth in samarium-cobalt magnets, which handle heat better than neodymium magnets and are favored in defense and aerospace. Their markets are small, so a single new buyer or supplier can move prices, and volumes are rarely large enough to carry a mine on their own.
Lanthanum and cerium: abundant and cheap
Lanthanum and cerium go into petroleum refining catalysts, auto catalysts, glass polishing and nickel-metal hydride batteries. USGS estimates that catalysts are the leading U.S. end use of rare earths. Because they are the most plentiful rare earths in most ores and supply tends to outrun demand, producers often have more of them than they can sell.
What does this mean for investors?
Start with what a project's basket contains. How much of the forecast revenue comes from NdPr and the heavy rare earths? What price deck did the company use, and is it a China benchmark or an ex-China contract? Can the company separate its own product, or must it sell concentrate at a discount? Few investors can buy rare earth oxides directly. Most exposure comes through producers, developers and funds, and our guide to rare earth ETFs shows how to check what a fund really holds.
Frequently asked questions
What are rare earth elements used for?
Their biggest use worldwide is permanent magnets for electric motors and generators. They also go into catalysts for oil refining and vehicle exhaust, glass polishing powders, nickel-metal hydride batteries, phosphors, lasers and many defense systems. Each element has its own markets, which is why their prices differ so widely.
Which country produces the most rare earths?
China, by a wide margin. See our guide to the top rare earth producing countries for tonnage by country. China's lead is even larger in separation and magnet production than in mining, and several other countries that mine rare earths still send much of their output to China for processing.
Are rare earth investments profitable?
Only some are. Results depend on the ore basket, separation costs, financing and the price cycle, and many rare earth companies are small and not yet producing. Prices for the main magnet elements have risen and fallen sharply within a few years, so a project's economics depend heavily on the price deck it assumes.
How can I invest in rare earth elements?
Mostly through shares in producers and developers, or through exchange-traded funds that hold them. Physical oxide is hard for individuals to buy, store and sell. Read what a fund actually holds, because many funds marketed as rare earth funds hold other metals too, and a few holdings can dominate.
What are the risks of investing in rare earths?
Price swings, export controls, permitting delays, processing risk and dependence on a few buyers. Small companies may also need to raise money repeatedly before they produce anything. A project that sells to one magnet maker depends on that buyer's plans.
Disclaimer: This article is for information only and is not investment advice. Rare Earth Exchanges does not recommend buying or selling any security or commodity. Do your own research and consult a licensed financial adviser before investing.
