(Bloomberg) -- Rare earth stocks extended recent gains as fresh tensions between Beijing and Washington over China’s exports of the critical minerals fueled bets on alternative suppliers.

China and the US were locked in a spat after US President Donald Trump threatened massive tariffs on Chinese goods in response to Beijing’s plans to fortify its export controls. Separately, an Australian newspaper reported potential plans for a broad rare earths deal between Australia and the US.

Most Read from Bloomberg

Newsom Stares Down LA Revolt in New California Housing Fight HUD Issues Layoff Notices, Targeting Fair Housing Staff With Deep Cuts Billionaire Caruso Says He No Longer Builds in LA Due to Prices Mapping a Way Out of the US Housing Affordability Crisis The Secret to Vancouver’s Public Transit Ridership Recovery

On Monday, Arafura Rare Earths Ltd., which is developing a rare earths mine in Australia’s Northern Territory, rose as much as 27% to its highest level in more than two years. Lynas Rare Earths Ltd., already a key global producer, climbed as much as 8.5%, Iluka Resources Ltd. added as much as 6.3% and Australian Strategic Materials Ltd. jumped as much as 42%.

While Trump sought to cool the latest stand-off with his Chinese counterpart Xi Jinping, the episode may feed into a push by western policymakers to reduce reliance on China. Australia is considering a A$1.2 billion ($782 million) strategic minerals reserve among other measures as part of an agreement with the US, The Age reported on Sunday, citing a leaked departmental briefing paper.

Rare earths miners have spiked since April, when China threatened widespread industrial disruptions by slapping export controls on seven rare earths and products that contain them. On Thursday, Beijing said it would expand the measures to more rare earths and other commodities, while outlining plans for controls to apply to products sold anywhere in the world that contain even tiny amounts.

MP Materials Corp., which got backing from the US Department of Defense earlier this year, on Friday jumped more than 8% in New York to its highest close ever.

Related Chinese firms also advanced Monday, bucking broader declines across the country’s stock markets on the fresh spike in trade tensions. Magnets producer JL Mag Rare-Earth Co. gained as much as 17%, China Northern Rare Earth Group High-Tech Co. rose almost 10% and China Rare Earth Resources and Technology Co. advanced as much as 8.7%.

Most Read from Bloomberg Businessweek

‘I Believe It’s a Bubble’: What Some Smart People Are Saying About AI A Shipwreck Killed 41 Crew and 5,900 Cattle. The Brutal Business Behind It Goes On How Din Tai Fung Became America’s Top-Earning Restaurant Chain Did Wall Street Just Admit It’s a Casino After All? Drilling Frenzy Arrives in Canada’s Pristine Wilderness

©2025 Bloomberg L.P.

View Comments