USA Rare Earth Stock Surges Amid US-China Trade Moves – Azat TV
There’s finally a glimmer of calm in the ongoing U.S.-China trade drama — and investors are watching closely. After a tense few days of threats and countermeasures, signs now point toward possible de-escalation in the rare earth minerals dispute between the world’s two biggest economies.
U.S. Rare Earth Stocks Skyrocket
Shares of U.S. rare earth miners surged on Monday following President Donald Trump’s threat to slap 100% tariffs on Chinese imports starting November 1. The move came in response to China’s newly expanded export controls on critical minerals — the very materials essential for everything from smartphones to fighter jets.
USA Rare Earth and Critical Metals shot up over 25%, while Energy Fuels gained 16%. MP Materials, another key player, rallied 20%, and both NioCorp Developments and Ramaco Resources rose around 10%.
Yet, Trump’s tone seemed to soften soon after. On Sunday, he remarked that the situation with China would “be fine,” signaling that negotiations or behind-the-scenes talks might be underway.
China Expands Its Export Restrictions
According to Alicia Garcia Herrero, a senior analyst at Natixis, China’s latest move goes beyond previous export controls. Beijing has now extended restrictions to five additional rare earth elements and added curbs on the technology, equipment, and labor used in refining these minerals.
This expansion effectively tightens the global supply chain, giving China even more influence over the critical minerals market, where it already dominates production and processing.
JPMorgan’s $10 Billion National Security Push
In a bold countermeasure, JPMorgan Chase announced plans to invest up to $10 billion in industries vital to U.S. national security, including critical minerals. These funds will be distributed through direct equity investments and venture capital support.
CEO Jamie Dimon emphasized the urgency, stating:
“It has become painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals and manufacturing.”
This move aligns with Washington’s broader goal of reshoring supply chains and reducing dependence on geopolitical rivals.
Pentagon Accelerates Stockpile Plan
Meanwhile, the U.S. Department of Defense is reportedly speeding up efforts to stockpile $1 billion worth of critical minerals, as per the Financial Times. This would ensure that the country has sufficient reserves for its defense, clean energy, and tech industries in case of future disruptions.
Why Rare Earths Matter
Rare earths are not your average minerals — they’re the backbone of modern innovation. From electric vehicles and robotics to missile guidance systems and consumer electronics, these elements are crucial. Yet, the supply chain remains heavily dependent on China, which produces about 60–70% of the world’s output.
The Bottom Line
The latest developments hint at a strategic recalibration rather than an all-out trade war. The U.S. appears determined to secure its critical mineral supply, while China seems intent on leveraging its market dominance carefully.
If de-escalation continues, both economies could avoid another round of damaging tariffs — a relief for industries and investors alike. But one thing’s certain: rare earths have now become the new oil in the global power struggle for technological supremacy.
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