Rare earth stocks rise due to the trade dispute between the United States and China over important minerals

Shares of rare earth mining companies rose in the United States on Monday, after Pres Donald Trump China has threatened retaliation over its strict controls on exports of important minerals.

Critical minerals rose 55% USA rare earths rose more than 18% Energy fuel jumped more than 16% MP materials It rose about 21% Newcorp Developments It rose about 9%, and Ramaco Resources He got 11%.

Trump threatened China on Friday 100% tariffs starting November 1 In response to Beijing’s strict imposition Export controls On rare earth elements. The president appeared to soften his tone on Sunday, saying the situation with China would be “fine.”

Alicia Garcia Herrero, an analyst at research firm Natixis, said China’s restrictions go far beyond previous export controls. Beijing is expanding export controls to include five additional rare earth elements. It also imposes controls on technology, equipment and labor used in refining minerals, Herrero said.

In the meantimeJPMorgan Chase It said Monday it would invest up to $10 billion in industries critical to US national security including critical minerals. The investments will come in the form of direct equity stakes and venture capital, according to the bank.

“It has become painfully clear that the United States has allowed itself to become overly dependent on unreliable sources of critical minerals, products, and manufacturing — all of which are essential to our national security,” the JPMorgan CEO said. Jamie Damon He said in a press release.

The Department of Defense is accelerating its efforts to store $1 billion worth of critical minerals, according to him Financial Times.

Rare earths are a subset of important minerals that are critical inputs into America’s weapons platforms, robotics, electric vehicles, electronics, and other applications.