China tightens grip on rare earths supplies. The stocks involved in this crucial industry are surging

Core Viewpoint - Shares of U.S. rare earth and critical mineral miners surged following China's tightened export restrictions, leading to speculation about increased U.S. investment in domestic supply chains [1][2]. Group 1: Market Reactions - USA Rare Earth shares surged by 7%, MP Materials increased by over 4%, and Energy Fuels rose nearly 6% before market opening [2]. - Lithium Americas saw a rise of about 5%, while Trilogy Metals experienced a significant jump of more than 8% [2]. Group 2: China's Export Regulations - China now requires foreign entities to obtain licenses for exporting products containing more than 0.1% domestically sourced rare earths [2]. - Export licenses are also necessary for companies utilizing China's extraction, refining, or magnet recycling technology [2]. Group 3: U.S. Government Response - The White House is closely assessing the impact of the new Chinese export rules, which were implemented without prior notice [3]. - U.S. officials have accused China of market manipulation aimed at undermining foreign competition [3]. Group 4: U.S. Investment Initiatives - The Trump administration has taken equity stakes in MP Materials, Lithium Americas, and Trilogy Metals this year to bolster a domestic supply chain against China [4]. - USA Rare Earth and Energy Fuels have not finalized deals with the White House but maintain close communication with the administration [4].