China Moves to Limit Rare Earth Exports. These Mining Stocks Are Gaining.

China mined about 270,000 tons of rare-earth minerals in 2024, compared with about 45,000 tons by the U.S. (Joe Buglewicz/Bloomberg)

Key Points

• China’s new export restrictions on rare earth minerals and lithium-ion batteries boost shares of MP Materials and other miners.
• China, the global leader in rare-earth minerals, mined 270,000 tons in 2024 and controls about 85% of refining capacity.
• The Defense Department invested in MP Materials and Lithium Americas to secure domestic supply amid China’s market dominance.

China is at it again, attempting to roil commodities markets it dominates.

Shares of rare earth miner MP Materials and other commodity producers were rising Thursday after China made additional moves to restrict exports of rare earth materials and lithium-ion batteries.

MP Materials stock traded as high as $78.32 before sliding back to $72.29, closing up 2.4% on Thursday, while the S&P 500 and Dow Jones Industrial Average lost 0.3% and 0.5%, respectively. Shares of smaller rare earth companies USA Rare Earth and Ramaco Resources jumped 15% and 11.7%, respectively.

The moves came after China’s Commerce Ministry said Thursday that foreign suppliers must obtain government approval to export products containing certain rare earth minerals.

About 390,000 metric tons of rare-earth oxides were mined in 2024. China is the global leader, mining about 270,000 tons, compared with about 45,000 tons by the U.S. China also dominates the refining, with about 85% of total capacity.

China moved to restrict exports of rare earth earlier in 2025, amid rising trade tensions with the U.S., prompting President Donald Trump to step in to ensure rare earth supply and prompting the Defense Department to invest in MP Materials to help ensure security of supply in the years to come.

MP is the largest rare-earth producer in the Western Hemisphere, making neodymium and praseodymium oxides, key components of magnets that end up in high-tech products, including EVs and F-35 fighter jets.

Along with rare earths, China is going to require some export licenses for certain lithium-ion batteries. That had shares of lithium miners Albemarle and Lithium Americas up 5.3% and 2.2%, respectively, on Thursday.

Lithium is mined around the world, but much of it is refined in China. What’s more, China is the world’s largest maker of EV batteries.

China’s dominance also prompted the Defense Department to take a stake in Lithium Americas, which is developing a domestic lithium project.

The recent conflict between the two countries has caused some volatility, but it’s given an incredible boost to many sector stocks.

Lithium Americas’ stock started the year close to $3. It closed on Wednesday just below $8. MP stock began the year at around $17 a share. It closed on Wednesday above $71.

Write to Al Root at allen.root@dowjones.com