Chinese rare earth stocks rally 2026: Why investors bet on supply chain dominance
Chinese rare earth stocks rally in 2026 as investors bet on continued supply chain dominance amid rising US-China tensions and global supply concerns.
Western economies are racing to break free from China, but the market's placing a massive bet on the status quo. Shares of Chinese companies tied to rare-earth metals are surging as supply concerns mount. According to Reuters, heightened tensions with the US and a government-led production push on January 23, 2026, have fueled the latest rally.
China's unshakeable grip on critical minerals
It's no secret that China controls over 50% of global rare-earth reserves. They don't just sit on the raw materials; they dominate the refining and production processes too. While the West is pumping billions into local mining, investors seem convinced that China's leverage isn't going anywhere anytime soon. This market rally suggests that China's 'weaponization' of minerals is a risk investors are willing to capitalize on.
Counter-moves from Australia and Japan
The West isn't staying idle. Japan has launched deep-sea mining projects, and Australia's Lynas Rare Earths reported a revenue surge in Q2 due to higher prices. However, replacing the sheer volume of Chinese output remains a monumental challenge that could take another decade.
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