Al Root

Rare-earth stocks continued to fall early Monday, as investors unwound bets related to fear of Chinese export restrictions. That trade looks dead with President Donald Trump calling the Chinese rare-earth threat "completely gone."

The president isn't only talking about the short term. He seems to be thinking about the long term, too.

Shares of MP Materials, the largest rare-earth company in the Western Hemisphere, and stock in the aspiring rare-earth miners USA Rare Earth and Ramaco Resources were all lower in early Monday trading. Futures on the S&P 500 and Dow Jones Industrial Average were up 0.3% and flat, respectively.

The moves come after a couple of Sunday events. First, the White House released a fact sheet reviewing recent trade talks with China. In the talks, the U.S. secured commitments from China to suspend the implementation of export controls on rare-earth materials that it announced on Oct. 9.

Later in the day, Trump appeared on 60 Minutes. "I got everything that we wanted," said the president. "We got no rare-earths threat. That's gone, completely gone."

China dominates rare-earth processing, with an estimated 85% of global capacity. Use of the materials, important in the manufacturing of everything from smartphones to fighter jets, is up almost 400% over the past 10 years.

Beijing threatened export restrictions on rare earths in both April and October as China has sought to use access to the metals as leverage in its trade talks with the U.S. That has sparked a spate of volatility for rare- earth shares: Ramaco stock traded above $57 a share and below $30 in October. The pattern was similar for USA Rare Earth and MP.

Over the longer term, the outlook for the U.S. rare-earth industry is good. Trump is keen on securing domestic supplies and working with U.S. allies to eliminate the Chinese threat forever. "In a short period of time, we'll have everything we need for ourselves," Trump said.

Investors seem to recognize that, too. Coming into Monday trading, shares of MP, Ramaco, and USA Rare Earth were up an average of 190% year to date.

Write to Al Root at allen.root@dowjones.com

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November 03, 2025 08:59 ET (13:59 GMT)

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