It includes 39 stocks from four critical sectors: nuclear power and uranium, lithium, rare earths and strategic metals, and batteries and energy storage systems. The focus is on rising global geopolitical tensions and supply chain issues, leading to increased investment in securing critical materials. More than 70% of rare earth production now comes from China, raising concerns about the stability of supply. Previously, the Trump Administration acquired direct stakes in several companies, including mining companies Trilogy Metals Inc (NY:TMQ) and MP Materials Corp (NY:MP), Trilogy shares immediately rose from 2,000 to 11,000. New Chinese rules require foreign exporters to obtain an export license products containing even trace amounts of certain rare earth metals mined in China. The ministry announced the restrictions last Thursday.
China's decision coincides with preparations for Chinese President Xi Jinping and the United States to meet at a summit in South Korea in late October to discuss a trade agreement.
Rare earth stocks also rose in Asian markets as investors expect tighter supply and higher prices for these critical materials.
