Why did terbium oxide prices surge 64% while light rare earths lagged?

Why did terbium oxide prices surge 64% while light rare earths lagged?
Terbium oxide has been the standout performer among rare earths, rising roughly 64% over two months in one cycle, from around 4.5 million yuan per ton at the start of the year to near 8 million yuan, with expectations of breaking 10 million yuan. The fundamental driver is supply rigidity: China controls about 99% of global terbium supply, and mining quotas have grown only about 6% annually, far below demand growth. Heavy rare earth feedstocks from Myanmar face environmental shutdowns, while Lynas's Malaysian operations have also been constrained. On the demand side, terbium is essential for high-performance neodymium-iron-boron magnets used in EVs, wind turbines, and robotics, where terbium additions of 0.5-2% improve coercivity and high-temperature stability. With overseas supply alternatives still years away from meaningful volumes, the supply-demand mismatch remains acute.