Could a Chinese Blacklist Be Bullish for Rare-Earth Stocks?
Access to rare-earth minerals has become a growing focal point in U.S.-China geopolitical positioning
Overview
Geopolitical tensions between the U.S. and China are central to the bull cases for stocks like USA Rare Earth (NASDAQ: USAR) and MP Materials (NYSE: MP). China dominates the global market for the extraction and processing of rare-earth minerals, and the company has used its position in the sector as a key lever as it navigates increasingly adversarial relations with the U.S., Japan, and the European Union.
The U.S. and key allies have been making moves to reduce their dependence on Chinese rare-earth mineral supplies, but these initiatives are generally still in relatively early stages compared to what is needed. In June, China announced it was implementing export restrictions on the sale of goods and technologies to USA Rare Earth and MP Materials that could be used to support sourcing by foreign militaries.
Details
Could this actually be a bullish catalyst for U.S.-based rare-earth companies?
Source
Originally published at www.fool.com.