Shares of U.S. rare earth mining companies surged for a second consecutive session on Tuesday as renewed trade tensions between Washington and Beijing sparked heavy buying across the critical minerals sector.
Critical Metals soared more than 27% in premarket trading, while Energy Fuels gained 11%, USA Rare Earth added 10%, MP Materials climbed 7%, and NioCorp Developments advanced nearly 9%. The rally builds on Monday’s explosive gains that saw the group rise sharply after China announced sweeping export controls on rare earth minerals.
The U.S. reaction came swiftly. On Friday, President Donald Trump threatened to impose 100% tariffs on all Chinese imports beginning November 1, in response to Beijing’s tightening grip on the rare earth supply chain. While Trump appeared to tone down his rhetoric over the weekend — saying relations with China “will be fine” — investors are bracing for renewed volatility.
China dominates the global market for rare earths, producing roughly 70% of global supply and processing nearly 90% of all rare earth materials used in products ranging from smartphones to fighter jets. Analysts say the new export controls serve as both a political signal and an economic pressure tactic.
“China’s move highlights its leverage over global manufacturing supply chains,” said Daniel Chung, a senior commodities strategist at Meridian Capital. “The U.S. relies heavily on China for refined rare earth elements, so any disruption could ripple through industries from EVs to defense.”
Rare earth miners have become a strategic hedge for investors seeking exposure to geopolitical risk and clean energy infrastructure. The market’s sharp gains this week mirror similar rallies seen during prior periods of U.S.–China trade friction, as traders bet on government initiatives to boost domestic production and reduce foreign dependence.
Critical Metals, which focuses on developing U.S.-based processing capabilities, has emerged as one of the biggest beneficiaries of the latest tensions. Meanwhile, MP Materials, operator of the Mountain Pass mine in California — the only significant rare earth mine in the United States — is seeing renewed interest from institutional investors.
Monday’s surge reflected the scale of investor enthusiasm: Critical Metals jumped 55%, MP Materials climbed 21%, and USA Rare Earth rose 18% by the session’s close.
According to industry experts, Washington’s next steps may include expanding funding for domestic mining and refining projects under the Defense Production Act, as well as exploring supply chain partnerships with allies such as Australia, Canada, and Japan.
“The U.S. can’t compete with China on refining capacity overnight,” said Elaine Turner, managing partner at Horizon Investments. “But we are seeing the beginnings of a long-term realignment — where Western economies diversify mineral sourcing to strengthen energy security.”
As the clean energy transition accelerates, demand for critical minerals like neodymium, dysprosium, and terbium — used in electric motors, wind turbines, and advanced electronics — is projected to soar. The International Energy Agency estimates demand could quadruple by 2035, underscoring the urgency of developing alternative supply lines.
For now, investors are betting that the latest standoff could benefit U.S. miners in the short term, even if geopolitical uncertainty lingers. “This is a textbook case of markets pricing in both risk and opportunity,” Turner added. “As rare earths become the new oil, whoever secures supply wins the decade.”
