The market quotation for praseodymium-neodymium oxide is in the range of 880,000 - 890,000 yuan/tonne, representing an increase of approximately 35,000 yuan/tonne compared to pre-holiday levels, a rise exceeding 4.12%. This marks a staggering 98% increase year-on-year. The quotation for praseodymium-neodymium metal stands at 1.07 - 1.08 million yuan/tonne, up by 50,000 yuan/tonne (4.88%) from pre-holiday prices, also reflecting a 95% year-on-year increase.

Metal materials are widely used in automotive components, and their price fluctuations significantly impact cost structures. According to SMM estimates, a typical NEV's cost breakdown is as follows: power battery (35%-40%), traction motor and motor controller (10%-20%), body/chassis/interior (30%), and other electronics (7%). This analysis focuses on the traction motor system, as SMM has extensively covered batteries elsewhere. Within the motor system (10%-20% of total vehicle cost), raw materials account for the largest share. Key metal inputs include rare earth-neodymium iron boron (NdFeB) magnets (30%-35%) , copper-enameled wires (15%) , and aluminum-structural components (20%) . The simultaneous surge in these metals from late 2025 to early 2026 has placed immense cost pressure on motor manufacturers and NEV OEMs . 1. Rare Earth Metals: Supply Squeeze and Demand Resilience Drive Prices Up ​ Rare earth prices, particularly for praseodymium-neodymium (PrNd) metal, have risen sharply. As of February 9, 2026, PrNd prices reached 975,000–985,000 RMB/ton , a year-to-date increase of 33.1% . This acceleration stems from tight supply ​ (limited upstream output, weak production activity, and reduced spot availability due to long-term contract deliveries) and robust demand ​ (steady overseas orders for magnetic materials and growing expectations for NEVs and e-bikes in 2026). These factors collectively pushed prices upward . Motor manufacturers face greater challenges than magnetic material suppliers. They must absorb not only soaring rare earth costs but also high copper prices. Compounding this, motor makers struggle to pass cost increases downstream . NEV OEMs, grappling with fierce market competition, resist price adjustments. Consequently, motor producers are caught between expanding losses ​ (if they continue production) and losing market share ​ (if they halt operations). Their weak bargaining power, due to proximity to concentrated downstream customers, exacerbates the strain . 2. Copper: Structural Supply-Demand Imbalance and Financial Factors ​ Copper prices rose sharply from 87,000 RMB/ton in late 2025 to 105,000 RMB/ton in early 2026 , a gain of over 20% , and have remained elevated. This rally was driven by: Supply-chain constraints : Production disruptions in major copper-producing countries (e.g., Chile, Peru), geopolitical tensions, and logistics bottlenecks limited short-term supply. Financial influences : Global liquidity conditions and inflation expectations attracted speculative capital, amplifying price volatility. Strong demand : Sustained optimism regarding data centers and cable demand further supported prices . The impact on motors is direct and significant. Copper, critical for stator and rotor windings, constitutes a substantial portion of motor raw material costs. The price surge adds hundreds of RMB to the cost per motor , translating to billions of RMB in additional annual expenses ​ for large-scale OEMs. This pressure cascades through the supply chain, squeezing margins for material suppliers, motor makers, and vehicle manufacturers. While some industrial motor firms have raised prices, NEV OEMs have so far absorbed the costs, further straining their profitability . 3. Aluminum: Tight Fundamentals Amid Energy Transition Demand ​ Aluminum prices climbed nearly 10% ​ from December 2025 to January 2026, primarily due to structural supply-demand tightness . Demand is bolstered by global energy transition trends (e.g., NEV bodies, battery trays, and e-drive casings) and solar PV growth. On the supply side, aluminum production—highly energy-intensive—faces pressure from elevated global power prices, leading to unstable operational rates. Financial investors' focus on "green metals" has also contributed to price gains . Although aluminum's cost sensitivity is lower than copper's, it is widely used in motor housings, end covers, and cooling systems. Price increases directly raise motor manufacturing expenses, costing hundreds of millions of RMB ​ for producers at million-unit annual scales and eroding margins for motor suppliers and OEMs . 4. Path Forward: Technology and Supply Chain Adaptation ​ The concurrent rise in rare earth, copper, and aluminum prices has created unprecedented cost pressure. Motor and vehicle manufacturers urgently seek cost reductions, but technological solutions (e.g., flat-wire motors , material recycling ) require time. Short-term strategies include long-term supply contracts ​ and futures hedging ​ to manage risks. Long-term success will hinge on material innovation ​ (e.g., reducing rare earth content, optimizing aluminum-for-copper substitution) and vertical supply chain integration ​ to navigate resource constraints . SMM advises industry players to closely monitor policy shifts and alternative technologies, adapting procurement and production strategies dynamically

"The market has gone absolutely crazy." That's the shared sentiment among many executives at magnetic material and motor plants. As of February 9, 2026, the price of praseodymium-neodymium (Pr-Nd) metal has reached 975,000 - 985,000 yuan per ton, marking a single-day surge of 7%. This represents a 9.4% increase compared to last week​ and a staggering over 88% jump compared to the same period last year​

Recently, China Northern Rare Earth's joint venture moves in the magnet sector have attracted industry attention: the company has partnered with Ningbo Zhaobao, Suzhou Tongrun Drive, and Ningbo Xici to establish Northern Zhaobao Magnetics, advancing the implementation of a 3,000 mt/year high-performance NdFeB project. This seemingly independent set of moves actually reveals a fundamental shift in the underlying logic of the high-performance NdFeB industry's development—vertical integration and horizontal collaboration within the industry chain are becoming the core engines for technological breakthroughs and market competition.

【UK New Car Registrations in May Reach 150,070 Units】On June 5, the Society of Motor Manufacturers and Traders (SMMT) announced that the UK's new car registrations in May reached 150,070 units, a year-on-year increase of 1.6%.

[UK new car registrations hit 150,070 units in May] Data released by the Society of Motor Manufacturers and Traders (SMMT) on June 5 showed that new car registrations in the UK reached 150,070 units in May, up 1.6% YoY.

【UK New Car Sales Down 10.4% in April】Data from the Society of Motor Manufacturers and Traders shows that UK new car registrations in April 2025 fell by 10.4% year - on - year to 120,331 units. This marked the sixth decline in seven months, reflecting a fragile economic environment and weak consumer confidence. However, pure electric vehicle sales rose by 8.1% year - on - year to 24,558 units, capturing a 20.4% market share, up from 16.9% in the same period last year.

【UK New Auto Sales Down 10.4% YoY in April】 Recently, data from the Society of Motor Manufacturers and Traders (SMMT) showed that in April this year, new car registrations in the UK fell 10.4% YoY to 120,331 units. This marked the sixth decline in sales over the past seven months, reflecting a fragile economic environment and weak consumer confidence. Despite this, sales of battery electric vehicles (EVs) rose 8.1% YoY to 24,558 units, with a market share of 20.4%, up from 16.9% in the same period last year.

Despite the rising demand for EVs in the UK and Germany in April, Tesla's new car sales in these two countries plummeted to a two-year low, down 62% and 46% YoY, respectively. On Tuesday (May 6), data released by the German Federal Motor Transport Authority (KBA) showed that Tesla sold only 885 units in Germany in April, marking the fourth consecutive month of declining sales this year, with a YoY drop of 45.9%. KBA data also revealed that Tesla sold a total of 5,820 units in Germany from January to April this year, down 60.4% YoY. Meanwhile, the UK's Society of Motor Manufacturers and Traders (SMMT) also released its April report, showing that Tesla sold 512 new cars in the UK that month. In comparison, this figure was 1,352 units in April 2024, representing a YoY decline of over 62%. Data from research firm New AutoMotive also indicated that Tesla's EV market share in the UK has dropped to 9.3%, significantly shrinking from 12.5% in the same period last year. It is worth noting that, according to KBA data, Germany's overall car sales in April fell slightly by 0.2% YoY, while EV sales surged 53.5% against the trend. In the UK, EV registrations increased 8.1% YoY, but overall car sales declined 10.4%. Other data released last week also showed that Tesla's sales in other major European markets have fallen to multi-year lows. These figures have raised further doubts about whether the launch of Tesla's new Model Y can change the company's fate in Europe. Tesla's UK and German websites indicate that the new Model Y is expected to begin deliveries in June, but it will take several months to see if the new model can win back consumers from the sales data. Media analysis suggests that Tesla CEO Elon Musk's close relationship with US President Donald Trump, his political stance, and efforts to cut US government spending have sparked protests in Europe and the US, with Tesla showrooms and charging stations experiencing multiple acts of vandalism. Earlier reports claimed that Tesla's board had taken steps to identify a successor to Musk. However, Musk later denied this. Nevertheless, the information revealed that the board hopes Musk will devote more time to Tesla's work. In addition to Musk's political actions alienating European consumers, Chinese EV brands have also gained more recognition and are seizing Tesla's market share. KBA mentioned that Chinese EV manufacturer BYD's sales in Germany grew about 7.5 times to 1,566 units in April, with total sales since the beginning of this year increasing nearly 3.8 times to 2,791 units.

On April 22, at the CCIE 2025 SMM (20th) Copper Industry Conference & Copper Industry Expo - Electric Power Transmission and Distribution Industry Forum, Liang Dong, Chief Representative of the International Copper Association Beijing Office and Project Leader for Low-Carbon Drive / Senior Engineer, delivered a speech with the theme "Development Trends of Copper-Based Winding Materials in the Motor and Transformer Industry."