Rare earth stocks soar as US, China intensify race for critical minerals dominance

Rare earth stocks are soaring as the global race for critical minerals intensifies between the U.S. and China. Tony Sage, CEO of Critical Metals, claimed that geopolitical concerns and the increased demand for high-tech commodities have propelled the surge, which has seen the shares of some U.S.-listed miners triple in a matter of months.

Critical Metals Corp shares have increased 241% over the last three months, despite recent weeks of waning gains.  

NioCorp Developments, Energy Fuels, and Idaho Strategic Resources have all soared well beyond 100% during the same time frame. Over the first ten months of the year, the price of Energy Fuels’ stock has increased fourfold, while that of NioCorp Developments’ shares has almost quadrupled.

Audun Martinsen, head of supply chain research at Rystad Energy, claimed that a combination of speculative momentum, strategic policy support, and geopolitical tensions drove the recent surge in stock prices.

Rare earth stocks in the U.S. rise as global power shifts

A stratospheric surge in U.S.-listed rare earths mining equities has coincided with the emergence of these crucial minerals as a new battleground in the global race for resources. Tony Sage described the surge in U.S.-listed rare earths miners as proof of a major market boom. 

Sage mentioned that in the ongoing geopolitical rivalry between China and the U.S., rare earths have emerged as a crucial negotiating chip.

“I talk of it like this, I mean, there have been four big booms. You had the gold boom in the 19th century, the oil boom in the 20th century, in the early 21st century, you had the tech boom — and now you’ve got the rare earths boom.”

–Tony Sage, CEO of Critical Metals

Sage claimed that the growth in rare earths is a symbol of the future, one that will drive all upcoming inventions and industries. Audun Martinsen, Head of Supply Chain Research at Rystad Energy, also explained that the global strategy is changing from one of “filling the gap” through imports to “mining the gap” domestically or regionally. 

Tom Sage pointed out that many companies are unlikely to prosper, similar to past rare earth booms. He clarified that many oil and gold companies had failed to locate gold and oil during previous surges, and the rare earths industry might face a similar outcome. Sage warned that every boom produces enthusiasm, and with hype comes overconfidence when it comes to investment.

China tightens grip on global rare earths supply

China recently threatened to increase its export restrictions on rare earths, which it controls almost entirely, in an effort to consolidate its dominance in the supply chain further. The Chinese government agency said in the notice that it intends to restrict shipments to foreign defense and semiconductor users. 

China’s latest actions build on broad controls imposed in April, which caused severe shortages around the world before several agreements with the U.S. and Europe allowed shipments to restart.

Beijing produces 60% of the world’s mines and more than 90% of the processed rare earth goods and rare earth magnets. The nation manufactures a set of 17 elements that are essential components of everything from military radars and electric cars to airplane engines.

China’s Ministry of Commerce stated the nation will need a license to export processed rare earth goods. The nation’s wide range of processing technologies is now further limited by the new regulations. But after U.S. President Donald Trump and Chinese President Xi Jinping met face-to-face in South Korea on Thursday, Beijing decided to postpone the November 9 export controls by a year.

The International Energy Agency (IEA) reports that the increased use of mineral-intensive technologies and infrastructure, data centers, renewable energy sources, and electric vehicles is driving global demand for key minerals. The IEA forecasts that between 2024 and 2040, the global demand for key minerals will increase by 1.5 times.

Sign up to Bybit and start trading with $30,050 in welcome gifts