Shares in select rare earth and critical mineral companies shot up on Tuesday as the U.S. prepares to host a “historic” gathering of ministers from 50 countries. The goal is to discuss diversifying supply chains away from China.
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New trading tool for USAR bullsRare Earth Stocks Rally on U.S. Moves to Counter China
The rally also followed President Donald Trump’s Monday launch of the $12 billion Project Vault to build a critical mineral stockpile to reduce reliance on China and protect American companies during periods of supply disruption.
The following rare earth stocks soared:
- NioCorps Developments Limited (NB) — 21.75% to $7.50
- USA Rare Earth (USAR) – 17.46% to $25.97
- MP Materials Corp. (MP) — 9.30% to $64.61
Shares of United States Antimony (UAMY), the largest producer of antimony in North America, also ballooned about 23% to $9.65. This is despite UAMY stock plunging days earlier on reports that the Trump administration plans to shelve the proposal to guarantee a minimum price for U.S. critical minerals projects.
Critical mineral producers, BHP Group (BHP) and Rio Tinto (RIO), also recorded significant gains of 4.83% and 4.16%, respectively.
China Wields Control over Critical Minerals Supply Chain
According to data from the International Energy Agency, China refines between 47% and 87% of critical minerals that are used to produce the core components of electric vehicles, smartphones, and military defense systems, despite G7 countries being responsible for about 60% of global demand.
China uses its control over the supply of these minerals as leverage in its trade disputes with the U.S. Last year, the country caused a panic among automakers before its export curbs on certain critical minerals were lifted.
U.S. Pushes Joint Action to Curb China’s Grip
Announcing the inaugural gathering on Tuesday, the U.S. government, in a statement, noted that the objective is “to advance collective efforts to strengthen and diversify critical minerals supply chains.”
“This historic gathering will create momentum for collaboration to secure these critical components vital to technological innovation, economic strength, and national security,” added the U.S. Department of State.
The larger gathering expected today builds on one held earlier last month that was attended by several G7 finance ministers, including those from the EU, the UK, Canada, France, Germany, and Japan. The meeting comes as the U.S. and the EU have weighed measures such as price floors and forward purchases to support the critical minerals market.
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The TipRanks Stock Comparison tool helps identify which rare earth and other critical mineral stocks, including those discussed above, analysts currently view as attractive buys, as shown in the image below.
