US Rare Earth Miners Surge as China Delays Export Controls Amid Trade Agreement

Shares of US-listed rare earth miners surged on Thursday following a significant breakthrough in trade negotiations between President Donald Trump and Chinese leader Xi Jinping. The agreement, which involves a delay in the introduction of further export controls by China, has triggered notable increases in the stocks of key players in the rare earth market. Critical Metals saw its shares jump by 7% in premarket trading, while USA Rare Earth and Energy Fuels reported increases of around 5% and 3%, respectively. Similarly, both MP Materials and NioCorp Developments experienced gains of about 2%. This uptick in share prices comes shortly after President Trump declared a resolution to the critical issue surrounding rare earth exports, following what he called an 'amazing meeting' with Xi in South Korea. The discussions not only touched on rare earth matters but were part of a broader agreement that included the U.S. reducing tariffs linked to fentanyl. As a result of this negotiation, China has agreed to delay the previously announced rare earth export controls by one year. President Trump, speaking to reporters aboard Air Force One as he departed South Korea, expressed optimism that this decision would be routinely extended moving forward. However, it's important to note that current rare earth restrictions set by China—first announced in April—are still in effect. Previously, on October 9, Beijing had threatened to tighten these export controls on rare earths and related technologies, citing concerns about their misuse in military and other sensitive sectors. Rare earths, a collection of 17 elements on the periodic table, possess unique magnetic properties that make them essential in various industries, including automotive, robotics, and defense. China holds a dominant position in the global supply chain for these critical minerals, accounting for about 70% of the world's rare earth production and processing nearly 90% of the global supply. The U.S. has been vocal about the challenges presented by China's dominance in this sector, particularly as the country pivots towards more sustainable energy sources. As the world increasingly demands these materials for advanced technologies, the ongoing developments in U.S.-China trade relations will play a critical role in shaping the future landscape of the rare earth market. Related Sources: • Source 1 • Source 2