Shares of U.S.-listed companies involved in the rare earth supply chain climbed in premarket trading on Monday as investors continued to assess the impact of export restrictions on domestic producers.
Rare earths are minerals essential to many aspects of modern life, particularly in the technology sector and the energy transition. They are used in semiconductors and the motors of electric vehicles, making them critical components in today’s advanced technologies.
China has long maintained a stronghold on the rare earth supply chain, dominating almost 70% of global production and holding nearly half of the world’s reserves in 2024, according to the U.S. Geological Survey. With China keeping a tight grip on exports, countries like the U.S. are increasingly pursuing their own domestic supply chains to reduce reliance on Chinese sources.
Shares of U.S.-listed companies saw notable gains around 9:00 a.m. ET. MP Materials was last seen 3.6% higher in premarket trading, USA Rare Earth was up 8.6%, and Perpetua Resources rose approximately 6%. Canadian firms also made significant advances, with Lithium Americas up 6.7% and Trilogy Metals increasing 5.4%.
Michael Silver, CEO and chairman of rare earths distributor American Elements, told CNBC’s “Squawk Box” last week that the U.S. has sufficient heavy rare earth metals for its military applications. However, he warned that the supply chain squeeze could impact electric vehicles, lasers, and “quite a lot of commercial technology.”
https://www.cnbc.com/2025/10/20/rare-earths-gain-amid-us-effort-to-beat-chinas-dominance.html
