Rare Earths & Critical Materials Are Facing a Structural Crisis
Rare earths are back in the spotlight, fuelled by the combined impact of different factors. Geopolitical developments, policy measures and underlying demand are putting upward pressure on prices, bringing them closer to critical levels. Whether this trend continues will largely depend on how supply conditions evolve in the upcoming months.
China put its rare earth weapon back in the holster last November, but it didn’t unload it. As part of the trade truce, Beijing suspended its sweeping export controls on rare earth elements (“REE”) and strategic metals through November 2026. It is offering Western manufacturers a reprieve from what had been an escalating squeeze on the materials that power everything from EVs to fighter jets to smartphones. Markets exhaled, and the REE sector took off. But the reprieve is exactly that, and the clock is still ticking.