By Adam Clark
Rare-earths stocks were rising early Friday, with investors watching out for the chances of a trade deal being clinched between the U.S. and China.
MP Materials, the U.S.'s flagship rare-earths producer, was up 2.3%. USA Rare Earth was climbing 3% and Ramaco Resources was gaining 0.5%. All three of those stocks have recorded triple-digit gains this year so far amid U.S. efforts to reduce its reliance on China for rare earths, which are key components in multiple sectors.
President Donald Trump is set to meet China's leader Xi Jinping next Thursday. It's unlikely that would be the case unless the framework for a trade deal has been established, although negotiations will likely largely take place when Treasury Secretary Scott Bessent and his counterpart He Lifeng meet in the next few days.
However, it seems unlikely that any trade agreement will derail U.S. efforts to become more self-sufficient in rare earths. China produces around 90% of the world's refined rare earths and earlier this month unveiled broad restrictions on their export.
Toronto-listed Aclara Resources said Friday it plans to construct the first heavy rare earths separation facility in the U.S. It is scheduled for completion in 2027 and Aclara will invest around $277 million, with the state of Louisiana providing around $46.4 million in tax incentives and grants.
"Our Project is unique in the Western world: with direct access to our ionic clay deposits, this will be the only fully integrated heavy rare earth separation operation currently capable of producing material volumes of heavy rare earths at scale," Aclara CEO Ramon Barua said in a statement. "We are moving at an accelerated pace to bring supply online as quickly as possible, and we are working to have our projects converge and enter production by mid-2028."
Write to Adam Clark at adam.clark@barrons.com
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October 24, 2025 08:42 ET (12:42 GMT)
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