The Rare Earths Boom Driving a New Global Supercycle

The global race for critical minerals is sparking one of the most explosive rallies in years. U.S.-listed rare earths miners have soared as much as 300% in 2025, with Critical Metals up 241% in just three months.

The surge follows intensifying geopolitical tension between Washington and Beijing. China still controls around 70% of global rare earths output and recently delayed planned export controls after high-level talks between Presidents Trump and Xi in South Korea. 

Markets reacted instantly: U.S. rare earths stocks jumped as the dollar steadied near ¥148 against the yen and Treasury yields hovered around 4.5%, reflecting renewed risk appetite.

Analysts describe this as a rare earths “supercycle,” similar to the gold or oil booms of earlier centuries. Years of underinvestment and low commodity prices have set the stage for supply shortages just as demand surges from clean energy and AI manufacturing. Yet, some warn of speculative excess, many exploration firms will fail to produce economically viable deposits, a familiar pattern in past commodity booms.

What Does This Mean for Me?

With Beijing’s dominance in mining and refining, Western economies are moving from importing minerals to developing regional supply chains. This will be costly and uneven but essential to securing the raw materials that power electric vehicles, wind turbines, and defencetechnologies. For now, the trend is clearly that rare earth present a turning point where geopolitics, clean energy, and investor optimism collide.