China’s Export Cutoff May Lead To Rare Earth Rush, US Scrambles for Seabed Minerals

An emerging crisis in the global supply of rare earth elements is drawing heightened scrutiny from both Wall Street and government officials, as speculation mounts that China—one of the world’s leading producers—may restrict exports.

“Wall Street consensus is not nearly focused enough on this issue yet,” remarked market analyst Luke Gromen, adding, “Give it a few more days, or until analysts begin asking companies how long they can continue to produce electronics if China cuts off rare earths, whichever comes first.”

At the government level, policymakers have also taken note of the potential crisis. According to PiQ, who cited a statement from National Economic Council Director Kevin Hassett, “Rare earth limits [are] being studied very carefully.”

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As Beijing’s move reverberates through global supply chains, the White House has begun looking for alternative sources. One emerging option is seabed mining, and the Canadian firm The Metals Company stands at the forefront of this nascent industry. Together with Swiss maritime engineering heavyweight Allseas, TMC has developed a purpose-built ship and fully tested deep-sea mining technology—an achievement that has led to a surge in TMC’s share price.

According to a report in the Financial Times, the Trump administration plans to issue an order establishing a strategic reserve of rare earth minerals, which could create a significant market for seabed-derived metals. Talks are already underway to grant TMC an American license to extract minerals in international waters, circumventing environmental concerns still under review by the International Seabed Commission.

Rare earth elements include a group of metals with distinct properties used in vital electronic components, electric motors, and even military hardware. A sudden halt in shipments from China could send shockwaves across industries and trigger a scramble for alternative sources.

Some market watchers believe this scenario could prompt unprecedented investment in new mining projects, leading to what could be a “rare earth rush.”


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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