Shares of U.S.-listed rare earth miners fell as much as 8 per cent before the bell on Monday after Washington and Beijing reached a framework for a trade deal that could pause planned U.S. tariffs and Chinese export controls on critical minerals, easing fears of supply disruptions that had boosted the sector this year.
The rare earths truce marks a pause in one of the most strategic fronts of U.S.-China trade tensions.
China processes more than 90 per cent of the world’s rare earths and magnets and recently expanded export curbs, including new elements to its control list and tightened oversight of foreign producers that rely on Chinese materials.
The U.S., by contrast, has one operational rare earth mine and is racing to secure minerals vital for electric vehicles, defense systems and advanced manufacturing.
U.S. President Donald Trump had proposed 100 per cent tariffs on Chinese imports, which were due to take effect on November 1 after the latest restrictions.
The preliminary deal is expected to be reviewed by Trump and Chinese President Xi Jinping later this week at the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea.
With supply risks receding, investors unwound some bets that U.S. miners would gain from an extended trade standoff.
Shares of Critical Metals slumped nearly 8 per cent, Ramaco Resources fell 5.7 per cent, and NioCorp Developments dropped 5.4 per cent.
MP Materials, USA Rare Earth and Trilogy Metals each fell more than 6.5 per cent.
Several U.S. rare earth miners such as MP Materials, Critical Metals, Lithium Americas and USA Rare Earth also gained as the Trump administration picked up stakes and signed supply-chain deals to cut dependence on China.
(Reporting by Katha Kalia in Bengaluru; Editing by Sriraj Kalluvila)
