# Rare earths: Correlation Prices it moves with, and why Source page: https://www.materialinsights.org/commodities/rare_earths/correlation/ Rare earths are a group of elements mined and especially processed mostly in China, which sets prices through quotas and export controls. Neodymium and praseodymium for magnets carry most of the value, so electric motors and wind turbines drive demand. No public price Rare earths has no public monthly price series: Priced mainly in Chinese markets and private assessments; no free series. #### What its price moves with Energy [Mot Electric motors and drives](https://www.materialinsights.org/energy/e_motors/)Magnet demand Neodymium-iron-boron permanent magnets make compact, efficient motors for cars, robots, drones and appliances, and they carry most of the value of mined rare earths. Motor output is therefore the main price driver. Not enough overlapping price history to measure. Energy [WOf Offshore wind](https://www.materialinsights.org/energy/e_offshore_wind/)Magnet demand Direct-drive generators in many offshore wind turbines use large rare-earth magnets, so offshore build-out adds demand. Turbine makers can switch to geared designs with fewer magnets when prices spike, cutting their exposure. Not enough overlapping price history to measure. Energy [EV Electric and hybrid vehicles](https://www.materialinsights.org/energy/e_evs/)Magnet demand Most electric car traction motors use permanent magnets containing neodymium and dysprosium, so EV growth drives rare earth demand. Chinese export licensing on these materials has pushed carmakers to develop magnet-free motors. Not enough overlapping price history to measure. Chemical [FCC Refining catalysts](https://www.materialinsights.org/chemicals/refining_catalysts/)Catalyst use Fluid catalytic cracking catalysts in refineries use lanthanum and cerium, a large-volume but low-value outlet for the lighter rare earths, which are mined alongside neodymium whether they are needed or not. No public price for refining catalysts, so the link is explained in words only. Commodity [Th Thorium](https://www.materialinsights.org/commodities/thorium/)By-product Monazite sands, an important rare earth source in India and elsewhere, contain radioactive thorium, which must be separated and stored. That handling cost and regulation limit how easily new rare earth supply can start. No public price for thorium, so the link is explained in words only. Chemical [PGM Autocatalysts](https://www.materialinsights.org/chemicals/autocatalysts/)Catalyst use Cerium oxide stores and releases oxygen in car catalytic converters, helping the platinum-group metals work. It is a steady use for one of the most abundant rare earths, though worth little. Not enough overlapping price history to measure. How to read these numbers **Correlation of monthly changes** (the number in the coloured pill) compares how much each price moved, month by month, since 2006 or the first month both series exist. It runs from −1 to +1: near +1 the two usually rise and fall in the same months, near 0 there is no link, and a negative number means they tend to move in opposite directions. Above 0.7 is strong, 0.4 to 0.7 moderate, 0.2 to 0.4 weak. **12-month changes** compare year-on-year moves, which shows whether two prices share the same cycles even when the month-to-month noise differs. **Price function** is a straight-line fit of the two prices on logarithmic scales: price ≈ k × (partner price)^β. β is how much this price moves, in per cent, for a 1% move in the partner over the whole period, and R² is the share of the variation the fit explains. Two prices that both drift up with inflation can fit well without any real link, so read it together with the monthly correlation. **Lead or lag** checks whether the monthly correlation is clearly higher when one price is shifted by 1 to 6 months. Correlation is not cause. The reasons on each card explain the economic link; the numbers show how strongly it has shown up in prices. Proxy series are US producer price indexes or related prices and can blur the real link. Data: World Bank Commodity Price Data (Pink Sheet), October 2026; US Bureau of Labor Statistics producer price indexes, IMF primary commodity prices and US EIA prices via FRED, Federal Reserve Bank of St. Louis, retrieved November 2026. Calculations by this site. ## Other sections - [Summary](https://www.materialinsights.org/commodities/rare_earths/index.md) - [Overview](https://www.materialinsights.org/commodities/rare_earths/overview/index.md) - [Extraction](https://www.materialinsights.org/commodities/rare_earths/extraction/index.md) - [Production](https://www.materialinsights.org/commodities/rare_earths/production/index.md) - [Stocks](https://www.materialinsights.org/commodities/rare_earths/stocks/index.md) - [Cycles](https://www.materialinsights.org/commodities/rare_earths/cycles/index.md) - [Trading](https://www.materialinsights.org/commodities/rare_earths/trading/index.md) - [Movement](https://www.materialinsights.org/commodities/rare_earths/movement/index.md) - [Criticality](https://www.materialinsights.org/commodities/rare_earths/criticality/index.md) - [Characteristics](https://www.materialinsights.org/commodities/rare_earths/characteristics/index.md) - [Emissions](https://www.materialinsights.org/commodities/rare_earths/emissions/index.md) - [Relationships](https://www.materialinsights.org/commodities/rare_earths/links/index.md)