Critical Metals Corporation (CRML) saw its stock price plummet by 13.20% in pre-market trading on Wednesday, as the rare earth metals sector continues to experience significant volatility. The sharp decline follows a tumultuous period for CRML and other rare earth stocks, which have been particularly sensitive to ongoing US-China trade tensions and geopolitical developments.

The pre-market plunge extends the downward trend that began in after-hours trading on Tuesday, where CRML had already fallen 5.07%. This reversal came after an initial surge during regular trading hours on Tuesday, driven by enthusiasm for rare earth metal stocks amid escalating trade tensions. However, subsequent profit-taking and growing uncertainty have contributed to the stock's continued decline.

Analysts attribute the volatility in CRML's stock price to several factors, including recent actions by China to tighten export controls on rare earth minerals. These moves have reignited concerns over potential supply constraints, drawing attention to US-based rare earth companies. However, the market's rapid shifts highlight the uncertainty surrounding these geopolitical factors and their long-term impact on companies like Critical Metals Corporation. As the rare earth sector continues to navigate these challenges, investors remain cautious, contributing to the significant price swings observed in CRML and its peers.