Rare earth stocks in focus amid US-China trade talks
In a bird’s eye view, a cargo ship is seen moored at the Port of Oakland on October 10, 2025 in Oakland, California.
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Stocks of several U.S.-listed rare earth miners experienced a significant drop on Monday following reports that China might postpone implementing export controls on critical minerals as part of a broader trade agreement.
Critical Metals plunged more than 17% in early trading, USA Rare Earth decreased by 12%, MP Materials was down 7.3%, and Trilogy Metals saw a 15% decline. Energy Fuels and NioCorp Developments also experienced drops of 14.7% and 9.5%, respectively.
U.S. Treasury Secretary Scott Bessent mentioned in an interview with NBC News’ “Meet The Press” on Sunday that a trade deal between Washington and Beijing was imminent, with China likely delaying the implementation of strict export controls on rare earth minerals.
These statements precede a crucial meeting between Chinese leader Xi Jinping and U.S. President Donald Trump scheduled for Thursday.
While en route to Japan on Air Force One, Trump expressed optimism about reaching a trade agreement with China, emphasizing his respect for President Xi.
Previously, the U.S. president had threatened to impose a 100% tariff on Chinese imports starting from November 1, along with export controls on critical software.
China, on the other hand, unveiled a new framework earlier in the month for regulating rare earth exports, signaling heightened tensions between Beijing and Washington.
It is important to note that China dominates the global supply chain for critical minerals, producing nearly 70% of the world’s rare earth supply and processing almost 90%, indicating its reliance on imports from other nations for these materials.
“Specifics are still scarce, and final decisions will be made post the Trump-Xi meeting,” noted Wolfe Research analyst Tobin Marcus in an October 26 report.
“However, it appears highly likely that a new agreement will be reached, with China postponing their rare earth export controls for a year—opting for this over the alternative of issuing licenses,” Marcus added.
— Contributions to this report by CNBC’s Michael Bloom.
