Rare Earth Stocks Rally on Supply Shock
US-listed rare earth and critical mineral miners jumped sharply Thursday after China imposed new export restrictions, reigniting concerns about global supply control and potential retaliation from Washington.
- USA Rare Earth (private) soared 16%.
- Energy Fuels (UUUU) gained 12%.
- NioCorp Developments (NB) rallied 14%.
- MP Materials (MP) rose 6%, while Albemarle (ALB) advanced 7%.
- Lithium producers, including Trilogy Metals (TMQ) and Lithium Americas (LAC), also climbed.
The gains followed news from China’s Ministry of Commerce, which now requires foreign firms to obtain licenses for exporting goods containing 0.1% or more rare earth content. The rule also applies to companies using Chinese refining or recycling technology.
Beijing’s move, announced without warning, arrives ahead of a scheduled meeting between President Xi Jinping and the US president later this month at the APEC Summit in Seoul, amplifying market tension and speculation of further policy escalation.
White House Expected to Step In
The US administration is reportedly assessing the impact of the new rules as part of its broader strategy to stand up a domestic critical minerals ecosystem.
Rare earths — essential for defense systems, EVs, robotics, and semiconductors — remain a chokepoint in US industrial resilience. Washington’s dependence on China for more than 80% of refined supply has long been viewed as a national security risk.
This latest export tightening is expected to accelerate the White House’s investment push. In recent months:
- The administration took equity stakes in MP Materials, Lithium Americas, and Trilogy Metals, marking a policy shift from procurement to ownership.
- Energy Fuels and USA Rare Earth executives confirmed ongoing talks with federal agencies on potential partnership frameworks.
“Building resilient supply chains is a matter of economic and national security,” MP Materials said following the news.
China’s Strategic Leverage
Beijing’s export clampdown is widely viewed as part of a strategic gambit ahead of diplomatic talks. Analysts at Evercore ISI described it as a “game of chicken” between the two superpowers.
China continues to dominate global refining, processing roughly 90% of the world’s rare earths and controlling vast portions of midstream magnet and recycling technology.
By tightening its export rules, China is effectively using its industrial leverage to reinforce negotiating strength, with analysts suggesting that “China’s pain endurance and political cohesion” may give it a temporary edge.
WSA Take
Thursday’s market surge underscores how rare earths have shifted from a niche commodity to a national priority.
While Beijing flexes its control over processing, Washington is quietly moving from defensive rhetoric to active investment.
The race to secure critical minerals is accelerating — and with the US government now taking direct stakes in producers, the next phase could see a wave of new partnerships and acquisitions across North America.
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