Rare Earth Stocks Surge as U.S.-China Trade Tensions Heat Up

• U.S. rare earth mining stocks surged in premarket trading on Tuesday, with Critical Metals Corp. (CRML) up 39% to $32.23, USA Rare Earth Inc. (USAR) rallying 12% to $43.38, MP Materials Corp. (MP) rising 9% to $103.80, United States Antimony Corp. (UAMY) gaining 14.30% to $19.06, and NioCorp Developments Ltd. (NB) advancing 9% to $12.31, amid renewed U.S.-China trade tensions.
• The gains stem from President Donald Trump’s announcement of 100% tariffs on Chinese imports effective November 1, in response to Beijing’s export controls on critical minerals, where China controls nearly 70% of global rare earth mining and almost 90% of processing.
• This reflects broader U.S. efforts to diversify supply chains for clean energy and defense technologies, as companies like MP Materials and NioCorp advance domestic projects to meet exponential demand growth through 2030.

U.S. rare earth mining companies experienced significant premarket gains on Tuesday, fueled by escalating trade tensions between the United States and China over critical minerals supply chains. Critical Metals Corp. (CRML) surged more than 38% to $32.23 while USA Rare Earth Inc. (USAR) rallied 12% to $43.38. MP Materials Corp. (MP) rose nearly 9% to $103.80, United States Antimony Corp. (UAMY) climbed 14.30% to $19.06, and NioCorp Developments Ltd. (NB) advanced 9% to $12.31, extending momentum from the prior session’s sharp increases.

These movements reflect investor anticipation of policy shifts aimed at reducing reliance on Chinese dominance in rare earth production, where Beijing controls nearly 70% of global mining output and almost 90% of processing capacity, often importing raw materials for refinement. President Donald Trump’s Friday announcement of 100% tariffs on Chinese imports effective November 1, coupled with proposed export controls on critical software, has heightened scrutiny on vulnerabilities in the supply of elements essential for electric vehicles, wind turbines, semiconductors, and defense technologies. Although Trump tempered his stance on Sunday by stating the situation with Beijing would “be fine,” the rhetoric underscores ongoing efforts to onshore and diversify critical mineral sourcing, including through incentives under the Inflation Reduction Act that support domestic processing facilities.

The rally highlights the strategic pivot by U.S. firms to capitalize on this geopolitical realignment, as demand for rare earths is projected to intensify with the global clean energy transition. MP Materials, operator of the Mountain Pass mine in California – the only active rare earth site in the U.S. – stands to benefit from expanded separation and magnet production capabilities, while NioCorp advances its Elk Creek project in Nebraska, targeting niobium and scandium alongside rare earth byproducts. Similarly, USA Rare Earth’s Round Top deposit in Texas positions it for integrated mining and processing of multiple critical minerals, and United States Antimony bolsters antimony output critical for flame retardants and batteries. Critical Metals Corp. focuses on exploration in Greenland and Austria, aligning with Western initiatives to secure non-Chinese supplies amid forecasts of exponential demand growth through 2030. As trade spats persist, these companies are poised to drive economic resilience by fostering a more balanced global minerals ecosystem, mitigating risks from supply disruptions in high-tech and renewable sectors.

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