Recent developments in the rare earth market have seen the price of NdPr oxide rise by over 11% in the last month, reaching RMB 404,500 (US$56,620) per tonne. This increase follows a sustained period of lower prices, with expectations for further growth.
In 2024, China’s quota for rare earth production only increased by 5.9%, a significant drop from the 21.4% rise in 2023. This tightening of quotas has directly impacted market prices and availability.
Chinese smelters, facing restrictions due to these quotas, are likely to turn to non-Chinese sources to secure the material they need. This shift is expected to boost the competitiveness of the Mixed Rare Earth Carbonate (MREC) that will be produced at Longonjo, one of the largest undeveloped rare earth projects globally, which is currently under construction.
The rising prices and restricted Chinese quotas are positioning Longonjo as a key player in the global rare earth market.
Pensana plc (LON:PRE) explores and mines neodymium, praseodymium, and rare earth minerals. The Company’s flagship assets are the Saltend rare earth refinery project in the United Kingdom and Longonjo neodymium and praseodymium (NdPr) Project in Angola.