Abstract: The export price and reserves are two important questions in rare earth research. China 's rare earth should be maintained at a higher price based on its application values, relative scarcity, environmental costs and supply monopoly. We analyze the effect of rare earth reserve on its export price from aspects of supply -demand relation, market structure, reserves features, influences of reserve on supply elasticity and the impact of reserves on the elasticity of demand and supply elasticity. The major aims and pathways are put forward based on the reserve function and RE industry's future development target. The conclusions: rare earth export market structure deprives our bargaining power in the global RE market; national RE reserves will increase the export prices in a short term, but long-term effect is limited; the purpose of RE reserves, raw RE mineral being the major form, is to promote rare earth application industry.