TLDR
- Critical Metals Corp (CRML) stock rallied 27% in premarket trading after securing a 10-year off-take agreement with REalloys for its Greenland rare earth project.
- USA Rare Earth (USAR) gained 12% and MP Materials (MP) rose 8% as domestic rare earth miners benefited from U.S.-China trade tensions.
- JPMorgan announced $10 billion in investments for critical minerals to reduce U.S. dependence on foreign suppliers.
- Trump threatened 100% tariffs on Chinese imports after Beijing restricted rare earth exports, though he later softened his position.
- China controls 70% of global rare earth mining and 90% of processing, making supply chain diversification a national security priority.
Critical Metals Corp stock jumped 27.4% in Tuesday premarket trading. The rally extended Monday’s 55% gain as investors piled into U.S. rare earth miners.
The surge came after REalloys Inc. signed a letter of intent for a 10-year off-take agreement. REalloys will purchase 15% of rare earth concentrate from Critical Metals’ Tanbreez Project in Southern Greenland.
The Tanbreez Project ranks among the world’s largest heavy rare earth deposits. The agreement provides long-term revenue visibility for the mining operation.
Other domestic rare earth stocks also climbed. USA Rare Earth Inc. rose 12.36% while MP Materials Corp gained 8.67%.
Trade Tensions Drive Rare Earth Stock Rally
The sector rally reflects escalating U.S.-China tensions over critical minerals. China announced new rare earth export restrictions last Thursday to protect national security interests.
President Trump responded Friday by threatening 100% tariffs on Chinese imports starting November 1. The White House also plans export controls on critical software.
China dominates the rare earth supply chain. The country produces 70% of global rare earth mining output and processes 90% of these materials worldwide.
Trump softened his rhetoric on Sunday, saying the China situation will “be fine.” However, investors continue betting on domestic rare earth producers as supply chain alternatives.
MP Materials previously gained attention from billionaire Chamath Palihapitiya. He highlighted the company’s strategic importance for U.S. national security and Department of Defense supply chains.
JPMorgan Backs Critical Minerals Investment
JPMorgan Chase announced up to $10 billion in direct equity investments for national security priorities. Critical minerals and frontier technologies top the bank’s focus areas.
CEO Jamie Dimon emphasized reducing dependence on unreliable mineral sources. The bank will support companies through advisory services, financing, and direct investments.
The JPMorgan initiative aligns with government efforts to secure domestic supply chains. Western officials view China’s rare earth dominance as a strategic vulnerability.
Critical mineral demand is expected to surge as clean energy adoption accelerates. Electric vehicles, wind turbines, and defense systems all require rare earth elements.
Monday’s trading session delivered strong gains across the sector. Critical Metals closed up 55%, MP Materials rose 21%, and USA Rare Earth climbed 18%.
The off-take agreement between Critical Metals and REalloys demonstrates tangible progress in supply chain diversification. Companies are actively seeking alternatives to Chinese suppliers.
CNBC’s Jim Cramer noted China is adapting quickly to Trump’s trade policies. The country may be less reliant on American markets than previously thought.
Tuesday’s premarket action showed continued momentum in rare earth stocks. Critical Metals led gains with its 27% surge on the Greenland project deal.
