Shares of US rare earth companies rose in premarket trading Friday after a Reuters report said some Chinese suppliers have declined to ship rare earth materials to US customers despite receiving export licenses.
The developments come weeks before Chinese President Xi Jinping is scheduled to visit Washington, putting critical mineral supply chains back in focus.
Rare Earth stocks gain as Chinese shipments face delays
USA Rare Earth USAR gained 4.8%, MP Materials shares rose 3.9%, and Critical Metals climbed 5.9% in premarket trading.
According to the Reuters report, some Chinese suppliers have refused shipments to US customers since early August, citing concerns about potential repercussions from Beijing and the possibility that materials could ultimately reach sanctioned users.
The issue adds to ongoing concerns about access to rare earths and other critical materials.
US officials have repeatedly urged China to follow through on commitments made in Busan and Beijing to support the flow of rare earth export licenses.
A source familiar with US planning said in the report that the issue has become part of preparations for Xi’s planned Sept. 24 visit to Washington.
The supply situation remains tight for several rare earths and critical materials with applications in areas including aerospace, defense and chipmaking.
While exports of many rare earths and related magnets have recovered since China introduced restrictions in April 2025, prices for some materials remain near record highs.
China maintains dominant position in supply chain
China remains the dominant force in the global rare earth industry, accounting for about 70% of mining and 90% of processing.
Export restrictions and licensing delays have continued to affect US buyers.
Some US companies have reportedly waited more than six months for mineral licenses, while several firms have recently received multiple approvals after lengthy delays.
Yttrium exports to the US have increased this year but remain around half of 2024 levels.
China shipped 27 tons of yttrium to the US in July after two months without exports, marking the second-highest monthly shipment since January 2025.
Chinese restrictions have also affected other markets.
Chinese suppliers have largely refrained from shipping rare earth materials to Japanese companies, while exports of terbium, gallium and yttrium to Japan declined sharply in the first eight months of the year.
Reva Goujon, a geopolitical strategist at Rhodium Group, told Reuters that China has used rare earth export controls as a tool to constrain the US Commerce Department’s Bureau of Industry and Security.
She also expects Beijing could loosen some controls around the summit to ease US concerns over the implementation of previous agreements.
China’s foreign ministry said the country remained committed to maintaining global critical mineral supply chains.
US miners look to reduce China dependence
The supply concerns are strengthening the focus on US and Western rare earth producers seeking to develop alternatives to China’s dominant position.
USA Rare Earth is developing a domestic supply chain that includes its Round Top project in Texas.
The company also completed its acquisition of Serra Verde Group on Thursday. Serra Verde is described as “the only scaled producer of four magnetic and other critical heavy rare earth elements outside Asia”: neodymium, praseodymium, dysprosium and terbium.
MP Materials operates the Mountain Pass rare earth mine in California and stopped selling rare earth concentrate to China in July 2025.
The company is also expanding domestic processing and magnet manufacturing, including at its Independence facility in Texas.
Critical Metals is developing the Tanbreez project in Greenland as a potential Western source of rare earths, although the project has not yet entered commercial production.
The US government has also increased support for domestic supply chains.
Last month, the Trump administration finalized a $1.55 billion funding package that includes equity investment, debt support and long-term purchase commitments aimed at expanding domestic rare earth production and reducing reliance on China.
With rare earth supplies expected to feature in the upcoming Xi-Trump meeting, developments in export licensing and shipments could remain an important factor for the sector.
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