Rare Earth Stocks Climb As China Adds Restrictions

Rare earth and metals stocks continued the recent rally after China, supplier of over 90% of the world's processed rare earths, further restricted exports on Thursday.

CRML is surging. See the real-time price action here.

China Tightens Rare Earth Controls

China added five more rare earth elements to its control list and expanded rules to cover dozens of mining and refining technologies and equipment.

The country’s Ministry of Commerce stated that overseas defense firms and semiconductor makers will face further limitations, with foreign companies now needing a Chinese export license if their products contain Chinese rare earths—even if the deal does not directly involve a Chinese company.

Domestic Producers Surge

Shares of U.S. domestic rare earth producers surged as investors bet on higher prices and stronger demand for non-Chinese rare earth alternatives.

Here's a look at movers in the sector:

Northern Dynasty Minerals, Ltd. (AMEX:NAK)
Trilogy Metals, Inc. (AMEX:TMQ)
USA Rare Earth, Inc. (NASDAQ:USAR)
Critical Metals Corp. (NASDAQ:CRML)
Energy Fuels, Inc. (AMEX:UUUU)
Lithium Americas Corp. (NYSE:LAC)
TMC The Metals Company, Inc. (NASDAQ:TMC)
MP Materials Corp. (NYSE:MP)

The metals sector has been hot following investments and strong federal backing as the Trump administration focuses on building the domestic supply chain in the interest of national security.

Geopolitical Leverage Ahead of Trump-Xi Summit

Analysts see China's expansion of export restrictions as an attempt by Beijing to boost its leverage before an upcoming face-to-face meeting between President Trump and Chinese President Xi Jinping later this month.

The timing also coincides with a looming expiration of a 90-day trade truce between the U.S. and China, further raising the stakes for supply chain security.

The Takeaway

As supply chains adjust and geopolitical risks grow, rare earth and metals stocks climb on expectations of tighter supply, higher prices and a scramble for alternative sources.

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