Rare Earths / Critical Minerals

Strategic minerals for magnets, batteries, and defense whose supply security drives federal support and price swings.

Also known as: Critical Minerals, REEs

What it is

Rare earths and critical minerals are materials like neodymium, lithium, and cobalt essential to magnets, batteries, EVs, and defense systems. Supply is concentrated in a few countries, chiefly China for processing. Federal policy pushes to diversify sourcing.

What it does

Export restrictions, federal funding, and stockpiling for these minerals move miners and processors and ripple into EV, magnet, and defense supply chains. Supply shocks spike prices; domestic-supply policy favors U.S. producers. Investors track both sides.

The evidence

Export curbs on rare earths and processing materials have spiked prices and lifted non-Chinese miners and processors.

Best for

Miners and processors: MP (MP Materials), ALB, LAC; defense supply chains.

Pairs well with

export-controls, haleu, buy-american

Use cautiously with

Prices are volatile and China can flood or restrict supply; chasing spikes without demand support is risky.

Cautions

New domestic capacity takes years and can be undercut by lower-cost foreign supply.