Rare earth stocks are back in the spotlight as investors react to fresh export restrictions from China and rising concerns over global supply chain security. The moves have sparked a rally across U.S. and Chinese markets, with companies tied to rare earth mining and processing seeing sharp gains.
U.S. Rare Earth Stocks Rally
On Tuesday, U.S.-listed rare earth names surged. Critical Metals (CRML-US) jumped more than 28%, American Resources (AREC-US) gained 36%, and Energy Fuels (UUUU-US) rose over 10%. The momentum carried into October 13, when Critical Metals soared more than 55%, while American Resources and MP Materials (MP-US) each advanced more than 20%.
The rally reflects growing investor interest in companies positioned to benefit from tighter Chinese export policies and rising demand for rare earths in AI semiconductors, defense systems, and clean energy technologies.
Chinese A-Share Market Follows Suit
The enthusiasm wasn’t limited to U.S. markets. In China, Antai Technology hit its daily limit for four consecutive sessions, while Baosteel, China Rare Earth, New Life, and Northern Rare Earth all posted gains.
Adding fuel to the rally, Shenghe Resources issued a bullish earnings forecast, projecting net profit growth of 696% to 783% year-on-year for the first three quarters of 2025. The company cited higher rare earth product prices as the primary driver.
Policy Shifts Drive Market Sentiment
China’s Ministry of Commerce and General Administration of Customs recently issued four announcements imposing new export controls on rare earths and related materials. Officials emphasized the measures are designed to safeguard national security and supply chain stability, rather than targeting specific countries.
Analysts at Guotou Securities noted the policy marks a shift from simple resource control to a dual focus on technology and supply chain security. The move is expected to drive another round of rare earth price increases, further boosting earnings for producers.
U.S. Response: Building Domestic Supply Chains
Meanwhile, the U.S. government is taking steps to reduce reliance on Chinese supply. On October 7, Washington announced a partnership with Trilogy Metals, acquiring a 10% stake in the exploration company. Reports also suggest the Trump administration is considering a stake in Critical Metals, which would give the U.S. a direct interest in Greenland’s largest rare earth mining project.
These moves highlight the strategic importance of rare earths, not only for AI and semiconductor industries but also for defense and renewable energy applications.
The Bigger Picture
With demand rising and supply chains under scrutiny, rare earths are increasingly viewed as strategic metals. The combination of China’s export controls, U.S. government partnerships, and strong corporate earnings has created a powerful tailwind for the sector.
For investors, the message is clear: rare earth stocks are once again a hot trade, and the market’s appreciation of their strategic value is only growing.