The Race to Break China’s Rare Earth Supply Control

The Race to Break China’s Rare Earth Supply Control

So rare earth and strategic metals have become a powerful bargaining chip in global trade. China, which dominates global supply, recently tightened export restrictions on key rare earth metals, which is really a big deal since these materials power everything from your phone to electric vehicles and fighter jets. And that move has set off a new wave of urgency worldwide as countries are scrambling to kind of rebuild their own supply chains and cut dependence on China.

And the past few months, markets have really reflected that tension. Prices for magnet materials like neodymium remain up nearly 40% year on year. Tungsten has nearly doubled on tighter supply. But the bigger story isn't price though, really, it's policy. China's expanded export controls and the US threat of tariffs up to 100% have really kind of reignited this race to secure non-Chinese supply chains.

And in the US and abroad, that effort is gaining traction. The Pentagon is now the largest shareholder in MP Materials, anchoring this private-public partnership that sort of guarantees longer term pricing and magnet offtake. And other companies are also advancing with the Department of Energy and Defense and funding to scale domestic production of critical materials.

So while the fundamentals are mixed across metals, investment momentum is really building fast. Rare earths aren't just a niche material story anymore. We believe they've become a strategic lever in global trade and really a compelling opportunity for investors that are watching this space.