Rare earths stocks surge after China tightens grip on global supplies

Shares of U.S. rare earth and critical mineral miners surged Thursday after China tightened restrictions on exports, fuelling market speculation that the Trump administration will move more aggressively to invest in building out a domestic supply chain.

USA Rare Earth surged 7%, MP Materials jumped more than 4%, and Energy Fuels was up nearly 6% before the market opened. Lithium Americas popped about 5% and Trilogy Metals soared more than 8%.

Beijing is now requiring foreign entities to obtain a license to export products that contain more than 0.1% of domestically sourced rare earths, according to China’s Ministry of Commerce. Companies will also need export licenses if they use China’s extraction, refining or magnet recyling technology.

“The White House and relevant agencies are closely assessing any impact from the new rules, which were announced without any notice and imposed in an apparent effort to exert control over the entire world’s technology supply chains,” a White House official told CNBC.

The Trump administration has taken equity stakes in MP Materials, Lithium Americas and Trilogy Metals this year as it seeks to stand up a domestic supply chain against China.

USA Rare Earth and Energy Fuels have not struck deals with the White House, but their CEOs told CNBC that they are in close contact with the Trump administration.

This is a developing story. Please check back for updates.