Dysprosium prices recovered to $240-250/kg in March after falling below $100/kg in mid-2024, while neodymium moved back into the $130-150/kg range in China and roughly $220/kg internationally. Terbium remains at $1,000-1,100/kg domestically, with overseas premiums three to four times higher, reflecting tight inventories and concentrated Chinese production control.

General Electric’s wind turbines and electrified products rely on high-performance NdFeB magnets, so a tripling of rare earth metal costs since late 2023 could meaningfully squeeze turbine margins or increase project capex. Without new supply or cost offsets, GE may face higher material expenses in both commercial and government contracts.

From January 1, 2027, U.S. defense procurement rules prohibit the use of Chinese-origin rare earth materials in defense systems, cutting off the dominant supplier. This deadline accelerates the need for non-China magnet alloys and may drive domestic production scale-up that influences broader industrial magnet markets.

To mitigate raw material risks, GE could partner with emerging domestic alloy producers, invest in rare earth recycling programs or explore alternative generator technologies less dependent on heavy rare earths. Diversifying suppliers and advancing magnet-light designs will be critical to managing cost volatility and ensuring project timelines.