Experts at the International Rare Earth Industry Summit pointed out that severe price volatility in rare earth products has seriously harmed the industry's development. In less than half a year, rare earth product prices increased 5-10 times, which is abnormal in any industry. Application is the main driving force for the rare earth industry, and the extreme price volatility caught downstream application enterprises off guard, unable to digest high costs in time. Some enterprises reduced production or even stopped production, leading to a sharp decline in rare earth trading volume. Meanwhile, the unreasonable surge in rare earth prices caused the material to begin losing its price advantage in some application fields, leading to shrinking applications and seriously harming the healthy development of the rare earth industry. The Chinese government has since implemented various measures to stabilize prices and ensure sustainable development of the rare earth industry, including production quotas, stricter mining regulations, and industry consolidation.