HS Code:
Praseodymium, classified under HS Code 2805.30 (Rare-earth metals, scandium and yttrium, whether or not intermixed or interalloyed), is a rare-earth element critical for various high-tech applications. It is primarily used in the production of high-strength alloys for aircraft engines, in permanent magnets for electric vehicle motors and wind turbines, and in the glass and ceramics industries for coloring and polishing. Praseodymium is often extracted alongside other rare-earth elements like neodymium, and its supply is heavily concentrated in a few countries, leading to significant geopolitical and supply chain considerations.
Total Trade Volume
Approximately $500 million USD
Data from 2022
Source
United Nations Comtrade Database and International Trade Centre (ITC)
$400 million USD
80% of global trade of total trade
Increasing
$50 million USD
10% of global trade of total trade
Increasing
$20 million USD
4% of global trade of total trade
Stable
$15 million USD
3% of global trade of total trade
Decreasing
$10 million USD
2% of global trade of total trade
Stable
Average Rate
5.5% ad valorem
Highest Rate
25% (imposed by certain countries under trade restrictions or national security measures)
Lowest Rate
0% (under free trade agreements or WTO commitments for rare-earth elements)
Growing demand for green technologies
Increased need for praseodymium in permanent magnets for electric vehicles and wind turbines, driving up prices and trade volume by 15% annually.
2021-2023
Supply chain diversification efforts
Countries like Australia and the United States are ramping up domestic production and processing to reduce reliance on Chinese exports, leading to a 10% shift in trade patterns.
2020-2022
Price volatility due to geopolitical tensions
Trade disputes and export controls have caused price fluctuations of up to 20% in a single quarter, affecting long-term contracts and investment in mining.
2019-2023
In response to global demand and geopolitical pressures, China introduced stricter export licensing for rare-earth elements, including praseodymium, to prioritize domestic industries.
October 2023
Expected to cause a 10-15% reduction in global supply, driving prices higher and accelerating diversification efforts in other countries.
New investments in the Lynas Rare Earths project have positioned Australia as a key alternative supplier of praseodymium and other rare-earth elements.
July 2023
Increases global trade volume by an estimated 5%, reducing dependency on Chinese exports and stabilizing prices in the medium term.
The U.S. government announced funding under the Inflation Reduction Act to establish rare-earth processing plants, targeting elements like praseodymium for national security and green energy goals.
March 2023
Likely to boost U.S. import substitution and reduce reliance on foreign supply chains within 3-5 years.