Here's Why These Metal & Mining ETFs Gained 7%+ Monday

Core Insights - U.S.-China trade tensions escalated with President Trump's threat of higher tariffs on Chinese goods, particularly in response to China's new restrictions on rare earth metals, crucial for technology and defense industries [1] - Beijing's new export restrictions require foreign companies to obtain a government license for shipping products with over 0.1% rare earth content, effective from December 1 [2] ETF Performance - Rare earth-based and lithium ETFs experienced significant rallies on October 13, 2025, attributed to the new export restrictions [3] - The iShares Lithium Miners and Producers ETF (ILIT) rose by 14.2%, focusing on companies engaged in lithium ore mining and manufacturing [5] - The VanEck Rare Earth/Strategic Metals ETF (REMX) increased by 14.3%, tracking companies involved in rare earth and strategic metals production [6] - The Sprott Lithium Miners ETF (LITP) saw a 12.7% rise, targeting companies deriving significant revenue from lithium activities [7] - The Sprott Critical Materials ETF (SETM) gained 10.6%, focusing on global securities in the critical materials sector [8] Market Context - China holds over half of the world's lithium refining capacity, creating vulnerabilities for Western economies [4] - The U.S. government is attempting to reduce dependency on Chinese lithium by proposing nearly $1 billion for critical minerals development and over $3 billion in grants for domestic EV battery projects [4]