The price of rare earth hit a record high this week after demand outpaced supply in the world's top producer China, media reports said on Thursday.
Rare earth elements are produced in a handful of countries and play an essential role in technology, from microchips to speakers to X-ray imaging.
The rate of rare earth oxides and combination products rocketed 99% from about this time last year, setting a new record, Caixin Global reported.
This index measuring the prices in China of 21 rare earth oxides and combination products was published by the Association of China Rare Earth Industry.
The average spot price of a light variety of rare earth --- neodymium-praseodymium oxide on Wednesday was up 135% year-on-year at USD 173,315 per ton, according to data from the Shanghai research institute.
China holds 44 million tons of rare earth reserves, accounting for 36.7 per cent of the global stockpile. In 2020, China produced 140,000 tons of rare earth, accounting for nearly 60 per cent of global output, reported Global Times.
Analysts say China's dominance of rare-earth metals gives it a trump card in its rivalry with the US and it has shown a willingness to weaponize the trade.
The US and its allies are increasingly concerned China may choke off access to the metals, which are vital to the functioning of a variety of cutting-edge technologies.
( With inputs from ANI )
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