FILE PHOTO: Employees transporting soil containing rare earth elements for export at a port in Lianyungang, Jiangsu province, China, Oct. 31, 2010.
Stringer | Reuters
China on Tuesday responded to the U.S.-Australia critical minerals deal by saying resource-rich rare earth countries should take “a proactive role” in stabilizing their critical minerals supply chains.
A spokesperson for China’s Ministry of Foreign Affairs was asked concerning the U.S. and Australia critical minerals deal which has been framed as an effort to counter Beijing’s dominance.
“The formation of world production and provide chains is the results of market and company decisions,” Guo Jiakun said, in response to NBC.
“Resource-rich nations with critical minerals should play a proactive role in safeguarding the safety and stability of the economic and provide chains, and ensure normal economic and trade cooperation,” he added.
Rare earths are a category of minerals which can be critical for a swath of products from cars to semiconductors.
U.S. President Donald Trump and Australian Prime Minister Anthony Albanese on Monday signed an agreement on the White House intended to spice up the supplies of rare earths and other critical minerals.
The framework agreement, which was described as an $8.5 billion deal between the allies, comes shortly after China imposed more stringent export controls on rare earths.
China’s Commerce Ministry earlier this month announced expanded curbs on the export of rare earths and related technologies, searching for to forestall the “misuse” of minerals within the military and other sensitive sectors.
Western automotive industry groups have been amongst those to boost the alarm over the brand new export controls, saying the measures could pave the method to a period of supply chain chaos.
Prime Minister of Australia Anthony Albanese (L) and U.S. President Donald Trump shake hands after signing a $8.5 billion rare earth minerals agreement during a bilateral meeting within the Cabinet Room of the White House on Oct. 20, 2025 in Washington, DC.
Anna Moneymaker | Getty Images
Demand for rare earths and important minerals is predicted to grow exponentially in the approaching years because the clean energy transition picks up pace.
China is the undisputed leader of the critical minerals supply chain, accounting for roughly 60% of the world’s production of rare earth minerals and materials. U.S. officials have previously warned that this poses a strategic challenge amid the pivot to more sustainable energy sources.
Rare earths stocks
George Cheveley, natural resources portfolio manager at investment firm Ninety One, described the U.S. and Australia agreement as a protracted time coming, but “a very good deal” designed to spice up the provision of critical minerals outside of China.
“From an investment standpoint, it isn’t so obvious. This can be a very small sector,” Cheveley told CNBC’s “Squawk Box Europe” on Tuesday.
“And clearly if you’re coping with a sector so politicized and where government money is being put in essentially as a subsidy, it’s telling you that it’s difficult to make it work economically,” he added.
Shares of a few of Australia’s largest critical metals and rare earths firms jumped on Tuesday, while others lost ground after an early rally.
Lynas Rare Earths, Australia’s largest rare earths producer by market capitalization, fell 7.6% after posting gains earlier within the session. Mineral sand miner Iluka Resources slipped 0.1%, while lithium producer Pilbara Minerals added around 2.6%.
Latrobe Magnesium, Australia’s primary producer of the critical metal magnesium, notched gains of greater than 15%.
Stateside, rare earths stocks were last seen barely lower in premarket trading. Critical Metals slipped 3.8%, USA Rare Earth fell 5% and MP Materials lost 1.9%.
— CNBC’s Evelyn Cheng and Dylan Butts contributed to this report.
