U.S. rare earth stocks declined in premarket trading, with USA Rare Earth dropping approximately 5% and MP Materials, a major rare earth producer, falling around 6%. The sector-wide weakness reflects broad commodity market pressures and renewed concerns over Chinese export policies, given China’s dominance in global rare earth supply chains.
The pullback comes despite recent U.S. government efforts to boost domestic rare earth production through subsidies and trade policies. Investors are particularly cautious about near-term demand fluctuations, especially from the renewable energy and EV sectors, which heavily rely on rare earth materials.
Market analysts note that while long-term fundamentals remain strong due to geopolitical and green energy trends, short-term volatility may persist amid macroeconomic uncertainties and shifting trade dynamics.
Related topics：
