Zheng Quan Shi Bao·2025-10-15 02:13Core Viewpoint - Rare earth stocks have become a significant focus in the capital market, with substantial price increases observed in both U.S. and A-share markets, driven by rising prices of rare earth products and strategic geopolitical factors [1][2][3]. Market Performance - In the U.S. stock market, rare earth stocks saw significant gains, with Critical Metals rising over 28%, American Resources increasing over 36%, and Energy Fuels up over 10% as of the latest close [1][2]. - A-share market also experienced a strong performance in rare earth stocks, with An Tai Technology hitting the daily limit for four consecutive trading days, alongside gains from Baotou Steel, China Rare Earth, Xinlai Fu, and Northern Rare Earth [1]. Supply Chain Concerns - Recent geopolitical tensions have heightened concerns in the U.S. and Europe regarding the supply security of rare earth materials, particularly for AI semiconductors and military applications [3]. - The U.S. government is exploring partnerships and investments in domestic companies to bolster the rare earth supply chain, including acquiring a 10% stake in Trilogy Metals and potential investments in Critical Metals [3]. Policy Developments - China has implemented export controls on several rare earth-related items, citing their dual-use nature for military and civilian applications, which reflects the strategic importance of rare earths in global supply chains [4]. - The Chinese government has expressed willingness to maintain stable global supply chains while ensuring compliance with international obligations, indicating a balanced approach to export controls [4]. Earnings Growth - Companies in the rare earth sector are reporting significant earnings growth, with Shenghe Resources projecting a net profit increase of 696.82% to 782.96% year-on-year for the first three quarters of 2025, driven by favorable market conditions and rising product prices [5][6]. - Other companies, such as Northern Rare Earth and Yiyang New Materials, also reported substantial profit increases, with Northern Rare Earth expecting a net profit rise of 272.54% to 287.34% [6]. Future Outlook - Analysts suggest that the tightening of supply and increasing demand for rare earths, particularly in the context of new energy vehicles and wind power installations, will continue to drive the market positively [6][7]. - The strategic value of rare earths is expected to catalyze further interest and investment in the sector, with potential upward pressure on prices as global supply expectations adjust [7].