Recent data from China’s National Bureau of Statistics reveals a significant surge in the country’s mining and refining activities for non-ferrous metals, which encompass rare earth minerals. Through the first three quarters of the year, these activities increased by 14% year-on-year. Specifically, non-ferrous metal mining and dressing saw growth of 14.2%, while non-ferrous metal smelting and rolling activities advanced by 14.6%.
Rare earths are categorized as non-ferrous metals, meaning they do not contain iron, but the statistics do not specify the extent to which the increase is tied specifically to rare earths. This robust growth reflects Beijing’s strategic investments aimed at reinforcing its dominance in the rare earth sector. China currently commands approximately 70% of global rare earth mining, alongside holding 90% of the separation and processing market and an impressive 93% of magnet manufacturing.
The market is particularly attentive to developments surrounding rare earth materials as discussions ramp up between US President Trump and Chinese President Xi Jinping, scheduled for Thursday in South Korea. These talks are expected to focus on various trade issues, including those surrounding rare earth minerals.
Tensions between the two nations have escalated recently, particularly after China’s announcement of stringent export controls on materials containing even trace amounts of rare earth elements. In response to these international dynamics, US Treasury Secretary Scott Bessent expressed optimism on Sunday, indicating that he expects China to reinstate its purchases of US soybeans, which had been paused earlier this year. Additionally, he anticipates a delay in the implementation of China’s rare-earth export licensing requirements by a year.
Despite these positive negotiation signals, stocks in the rare earth sector, including companies like MP Materials, USA Rare Earth, and NioCorp Developments, experienced declines during Monday morning’s trading session. This reaction underscores the complex and often unpredictable nature of market responses to geopolitical developments, especially in the context of US-China relations.
