Rare Earth Magnet & Motor Materials worked example

Rare Earth Cost Sensitivity at 35% assumed price swing exposure: a worked example

What does the result look like when assumed price swing exposure reaches 35%? The full calculation is worked below with real intermediate numbers. Use it to stress-test motor or magnet material budgets against neodymium or dysprosium price volatility.

The inputs for this scenario

  • Rare Earth Content per Batch: 1,200 kg (unchanged)
  • NdPr Oxide Price per Kilogram: 75 $/kg (unchanged)
  • Assumed Price Swing Exposure: 35 % (raised for this scenario; the documented default is 30)
  • Base Non-RE Bill of Materials: 15,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Cost exposure = rare earth mass x price per kg x price move% + base non-RE material cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 46,500 $ for total rare earth cost sensitivity cost, the number this scenario is built around.
  • At this operating point the engine returns 38.75 $ / piece for rare earth cost sensitivity cost per unit.
  • At this operating point the engine returns 31,500 $ for variable rare earth cost sensitivity cost.
  • At this operating point the engine returns 15,000 $ for fixed rare earth cost sensitivity adder.

How this compares with the baseline

  • Against the tool's baseline example, where assumed price swing exposure sits at 30% and the headline result is 42,000 $, this scenario comes in 10.71% above the baseline at 46,500 $.
  • A figure at this level is achievable when assumed price swing exposure is genuinely sustained, not just peaked for a shift. It assumes a single blended rare earth price and a symmetric percentage move; it does not model separate Nd, Pr, and Dy price curves or hedged tranches, so treat it as a first-pass exposure screen, not a full mark-to-market.

Results at a glance

  • Total rare earth cost sensitivity cost: 46,500 $ (headline result)
  • Rare earth cost sensitivity cost per unit: 38.75 $ / piece
  • Variable rare earth cost sensitivity cost: 31,500 $
  • Fixed rare earth cost sensitivity adder: 15,000 $

Run it with your numbers

  • Every input above is editable in the live Rare Earth Cost Sensitivity calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.