Currently, China produces more than 95% of the world’s rare earth elements but in 2006 it began to impose export quotas and duty on these materials. In 2010 the export quota was cut by around 40%, which produced a shortfall of rare earth material on the world market particularly for magnets and resulted in neodymium and dysprosium prices soaring from around $20/kg and $150/kg to $450/kg and $4500/kg respectively. Although, subsequently, the prices for these rare earth metals has fallen to around $100/kg for Nd and $800/kg for Dy, the price volatility has driven a significant number of users out of the market. The result of this may be that devices become less energy efficient due to the loss of this critical material. Despite this, it is predicted that the use of rare earth magnets will increase significantly in the coming years due to their unique properties.