U.S. Rare Earths Surge as Government Battles China's Market Control

Rare Earths Gain Momentum Amid U.S. Efforts to Counter China’s Dominance

Published Mon, Oct 20 2025, 9:17 AM EDT
By Tasmin Lockwood

The United States and China face a clear challenge. Both fight for control over rare earth minerals. US-listed rare earth stocks jumped on Monday. Investor interest and shifts in government policy drove this rise.

China’s Longstanding Control and U.S. Response

China has long held rare earth elements. These minerals are key for modern technology. They help make semiconductors, fighter jets, electric car motors, lasers, and more. China runs a large part of the supply chain. US officials now work to build a strong domestic system. Trade tensions have grown as China sets tighter limits. In an interview, a US Treasury leader said the government plans a fixed price to stop market abuse by Chinese tactics.

Market Rally and Government Backing

Monday saw clear gains for companies in the rare earth chain:

NioCorp rose 9.3% soon after the market opened.
Energy Fuels climbed 3.8%.
USA Rare Earth increased 2.9%.
Perpetua Resources added 3.4%.
MP Materials, the largest US rare earth miner, gained 1.8%.

Canadian firms also fared well. Lithium Americas went up 2.6% while Trilogy Metals increased 2.2%.

This market rise fits with steps taken by the US Defense Department. In July, the department made a deal with MP Materials. The deal gave the government a share, set a fixed price on rare earths, and signed a buying agreement. It shows strong federal support for US production.

Anticipated Government Involvement

Investors hope the US will back more mining companies. A recent report rated USA Rare Earth as a solid performer. The report hints that more firms might share in government support under a wider plan.

Michael Silver, CEO and chairman of American Elements—a distributor of rare earth minerals—said on CNBC’s Squawk Box that the US holds enough heavy metals for military needs. He warned that a slow supply chain can harm production of electric cars, lasers, and other tech items. He said that opening new mines must be seen as a national priority with likely government funds and support.

China’s Export Restrictions

China now asks foreign companies to get approval before shipping rare earths. Firms must also state how they will use the materials. These tighter rules show that China sees these minerals as a valuable asset. This move pushes the US to speed up work on a secure home supply.

The rare earth sector, once small and ignored, now sits at the center of global strategy and tech progress. With government incentives and clear deals, US rare earth companies and investors appear ready for growth as the supply chain changes.

For continuous updates on the rare earth industry and related market developments, stay tuned to CNBC.

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