Erbium (Er) has become one of the latest rare earth elements to attract market attention. The Financial Times reported that, as of August 6, European erbium prices had risen by around 50% since the beginning of June, while prices in China had increased by more than 40%. The rise was linked mainly to increased buying ahead of November, amid concerns that currently suspended Chinese export controls on erbium could take effect again.
The price movement is notable not because Er is consumed in particularly large volumes, but precisely because it is not. Erbium is a relatively small-volume rare earth element whose better-known applications include Er-doped optical fibers, lasers, and other specialized materials.
Permanent magnets are one of the largest application areas for rare earth elements, and Er also has a role here despite the relatively small quantities involved. Its importance in specialized magnetic materials is therefore not necessarily proportional to its consumption volume.
In permanent magnets, erbium is mainly associated with specialized Samarium Cobalt (SmCo) magnets. It is not a major constituent of conventional SmCo magnets, but it can partially substitute for samarium in certain temperature-compensated grades to improve the temperature stability of remanence.
Erbium Price Trend
Erbium oxide prices can fluctuate significantly despite the relatively small size of the Er market. The chart below shows the price trend of erbium oxide in China, including the sharp increase seen in 2026. This movement has been associated more with changes in buying activity and supply expectations than with a sudden increase in underlying erbium consumption.
Notes:
- The data of erbium oxide price trend are derived from the median prices published by Asian Metal, not actual transaction price. The data are provided for information only and does not constitute investment advice.
- For a better viewing experience, we recommend opening the chart on a PC, where you can drag and zoom the chart for a closer view.
Erbium in Samarium Cobalt Magnets
Erbium is used in certain temperature-compensated Samarium Cobalt magnets, where it partially substitutes for samarium to reduce the temperature coefficient of remanence. Sm-Co and Er-Co compounds have different temperature-dependent magnetic behavior, allowing their contributions to partially compensate for each other as temperature changes.
The amount of Er depends on the required temperature characteristics rather than on a fixed formulation.
Greater substitution can further improve temperature stability, but it also changes remanence and other magnetic properties. The composition therefore needs to balance the required temperature coefficient with the overall magnetic performance of the grade.
This makes erbium relevant to a relatively small group of specialized SmCo magnets rather than to conventional SmCo grades as a whole. Its use is driven by a specific performance requirement, which also explains why a small-volume rare earth element can still have a distinct role in permanent magnet materials.
Limited Impact on SmCo Magnet Costs
Despite the sharp rise in erbium prices, the direct impact on Samarium Cobalt magnet costs is limited. Conventional SmCo grades do not rely on Er, while temperature-compensated grades represent only a small part of the overall SmCo market. Even within these specialized compositions, erbium is only one part of the material formulation.
For production and sales within China, the increase in erbium prices is therefore primarily a raw-material pricing issue rather than a new constraint on SmCo availability. The situation is different when SmCo magnets are exported, but this is not a new issue created by erbium. Samarium Cobalt permanent magnetic materials have already been subject to China’s dual-use export controls since April 2025 and require an export license when covered by the controlled items.
The additional export controls announced for erbium-related items in October 2025 are currently suspended until November 10, 2026. For overseas buyers of SmCo magnets, the more relevant consideration therefore remains the existing export control and licensing requirements for Samarium Cobalt permanent magnetic materials themselves.
