Shares of US-listed rare earth miners rose in premarket trading Thursday after Washington and Beijing reached a framework for a trade deal that could pause planned US tariffs and Chinese export controls on critical minerals.
The agreement, which eases fears of supply disruptions, sent several key rare earth stocks higher after a volatile period for the sector.
Rare earth stocks rally after trade breakthrough
Beijing’s Commerce Ministry confirmed that China will pause its latest rare earth export curbs for a year as part of the agreement.
The decision follows a meeting between US President Donald Trump and Chinese leader Xi Jinping in South Korea, where the two sides resolved several trade and economic issues.
According to state media outlet Xinhua, Beijing will “study and refine specific plans” during the one-year pause.
The announcement boosted shares of rare earth miners in early trading.
Critical Metals (CRTM) climbed 13.01%, Trilogy Metals (TMQ) rose 6.03%, USA Rare Earth (USAR) gained 7.81%, MP Materials (MP) advanced 5.3%, and NioCorp Developments (NB) added 4.6%.
Privately held REalloys received a letter of interest from the US Export-Import Bank for a loan of up to $200 million to help fund rare earth processing and magnet manufacturing facilities in North America.
The rally follows months of heightened volatility across the sector.
Rare earth stocks had surged earlier this year amid expectations of tighter Chinese export controls, only to retreat in the run-up to this week’s talks as investors priced in the likelihood of a deal.
Trade deal eases fears, but outlook remains uncertain
The agreement marks a temporary reprieve in the ongoing trade tensions between the world’s two largest economies.
Trump described the meeting with Xi as “amazing,” declaring that the “rare earth issue has been settled.”
He told reporters aboard Air Force One that he expects China’s decision to delay export restrictions to be “routinely extended.”
Still, the pause does not eliminate all existing restrictions.
China’s earlier curbs, announced in April, remain in place.
The prospect of stricter controls in October had initially triggered a rally in the sector, underscoring the market’s sensitivity to developments in China’s rare earths policy.
Investors remain cautious about whether the current framework will lead to a longer-term resolution.
Analysts note that the one-year delay provides breathing room for both sides to continue negotiations and for companies to diversify supply chains.
Strategic importance of rare earths in global supply chains
Rare earth elements — a group of 17 minerals with unique magnetic and conductive properties — are essential for a wide range of industries, including technology, electric vehicles, renewable energy, and defense.
China dominates the global rare earth supply chain, controlling roughly 70% of production and nearly 90% of processing capacity.
This concentration has raised concerns in Washington about the US’s dependence on Chinese supplies, particularly as demand for critical minerals increases with the transition to cleaner energy and advanced technologies.
US officials have previously warned that China’s dominance poses strategic challenges in both economic and national security terms.
Despite Thursday’s rally, market watchers say the sector’s volatility is unlikely to subside in the near term.
While the trade framework signals a thaw in relations, the broader competition over critical minerals, central to both countries’ industrial policies, remains unresolved.
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