Rare Earth Magnet & Motor Materials worked example

Rare Earth Cost Sensitivity at 22% assumed price swing exposure: a worked example

This worked example runs the rare earth cost sensitivity numbers for a tougher week than the baseline: 22% assumed price swing exposure instead of the typical 30%. Estimates how a rare earth price swing changes program material cost from RE mass, current price, and the modeled percentage move.

The inputs for this scenario

  • Rare Earth Content per Batch: 1,200 kg (held at the documented default)
  • NdPr Oxide Price per Kilogram: 75 $/kg (held at the documented default)
  • Assumed Price Swing Exposure: 22 % (the input this scenario stresses; the baseline uses 30)
  • Base Non-RE Bill of Materials: 15,000 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Cost exposure = rare earth mass x price per kg x price move% + base non-RE material cost.
  • Total rare earth cost sensitivity cost works out to 34,800 $ at these inputs, and this is the headline figure for the scenario.
  • Rare earth cost sensitivity cost per unit works out to 29 $ / piece at these inputs.
  • Variable rare earth cost sensitivity cost works out to 19,800 $ at these inputs.
  • Fixed rare earth cost sensitivity adder works out to 15,000 $ at these inputs.

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 17.14% below the baseline at 34,800 $.
  • Use it during supplier negotiations, hedging decisions, or quarterly cost reviews when rare earth spot prices have shifted or a customer wants a firm quote. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Total rare earth cost sensitivity cost: 34,800 $ (headline result)
  • Rare earth cost sensitivity cost per unit: 29 $ / piece
  • Variable rare earth cost sensitivity cost: 19,800 $
  • Fixed rare earth cost sensitivity adder: 15,000 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Rare Earth Cost Sensitivity calculator, set assumed price swing exposure to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.