Latest news with #rareearth

Globe and Mail

13 hours ago

Business
Globe and Mail

Why USA Rare Earth Stock Fell Today

Shares of USA Rare Earth (NASDAQ: USAR) stock fell an unlucky 13% through 1:30 p.m. ET Friday. And why? Well, last night President Trump announced the signing of a trade deal with China, and this morning, China's Ministry of Commerce confirmed the news, stating its intention to "approve export applications for items subject to export control rules," as CNBC just reported. Good news is bad news for USA Rare Earth stock China's referring first and foremost to applications for the export of rare earth magnets. And the reason this is bad news for USA Rare Earth is that the company is itself trying to break into the rare earth biz, by mining, processing, and supplying rare earths extracted from a mine in Sierra Blanca, Texas. Any increase in cheap rare earth exports from China could torpedo USA Rare Earth's business model, which is really predicated on China not allowing rare earth exports, such that rare earth sourced from within the U.S. will be the only way U.S. companies can access the products at all. Is USA Rare Earth stock a sell? Still, a couple caveats are worth pointing out. First and foremost, USA Rare Earth -- which only formed in 2019 -- doesn't actually mine any rare earths itself... yet. The company has no revenue, operating profit, or free cash flow whatsoever. Its entire $40 million net profit over the past year came from the "gain on fair market value of financial instruments" it holds. As such, it doesn't really matter what China does (or doesn't do) until USA starts producing some rare earths of its own, and proves itself a viable business. Unless and until that happens, I consider the stock entirely speculative -- and probably a sell. Should you invest $1,000 in Usa Rare Earth right now? Before you buy stock in Usa Rare Earth, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Usa Rare Earth wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor 's total average return is1,048% — a market-crushing outperformance compared to175%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025

The Verge

15 hours ago

Business
The Verge

China signs onto rare earth export deal with US.

China signs onto rare earth export deal with US. On Friday, China's Commerce Ministry said on state media that it will 'review and approve eligible export applications for controlled items in accordance with the law' in response to a question about rare earth materials.

China's rare earths are flowing again, but not freely

Reuters

16 hours ago

Automotive
Reuters

China's rare earths are flowing again, but not freely

BERLIN/BEIJING, June 27 (Reuters) - The threat of mass shutdowns across the automotive supply chain is fading as Chinese rare earth magnets begin to flow, though automakers and suppliers say production plans still face uncertainties and a continued risk of shortages. European suppliers have received enough licences to avoid the widespread disruptions predicted earlier this month but hundreds of permits remain pending, said Nils Poel, head of market affairs at supplier association CLEPA. The rate of issuance is "accelerating" and has risen to 60% from 25%, he said, but cases where the end users are based in the United States, or where products move through third countries like India, are taking longer or not being prioritised. "Overall the feeling is that we probably will still have production in July and that the impact will be manageable," he said. "Maybe here and there a production line will be affected, but we have avoided that for the moment." Volkswagen ( opens new tab said in a statement to Reuters its supply of rare earth components was stable while rival Stellantis ( opens new tab said it had addressed its immediate production concerns. China restricted exports of seven rare earths and related magnets in April in retaliation for U.S. tariffs. Three months later there remains huge uncertainty about how it intends to police its opaque and complex export licensing system. Since the restrictions were imposed, rare earth magnet exports from China have fallen roughly 75%, forcing some automaker production lines to halt in Asia, Europe and the United States. The White House said on Thursday it had signed a deal with China to speed up rare earth approvals without providing details. Beijing said hours later both parties had confirmed details of the deal struck in London earlier this month, which was meant to resolve the rare earth issue, and it would process export licences in accordance with the law. Neither party detailed any changes to the existing export licensing system. U.S. Treasury Secretary Scott Bessent said in an interview with Fox Business Network on Friday that, under the agreement announced on Thursday, rare earth shipments to the United States from China would be expedited to all companies that have previously received them on a regular basis. "I am confident now... the magnets will flow," Bessent said. "This is a de-escalation." Two weeks ago the car industry was in a "full panic," but licence approvals by China have sped up and there is now less threat of a sudden stop, according to an executive at a leading U.S. automotive supplier and a source with knowledge of the supply chain at a major European carmaker. Both asked not to be named because of the sensitivity of the issue. China is approving the "bare minimum" of critical licences for European firms to avoid production stoppages, a European official told Reuters, also speaking on condition of anonymity. U.S. magnet maker Dexter Magnetic Technologies, which has defence clients, among others, has received just five of 180 licences since April, CEO Kash Mishra told Reuters, adding those were intended for non-defence sectors. "It's an extended delay," he said. "It's 45 days trying to get the paperwork right for the supplier, and then it's 45 more days or so before any licences are granted."

US and China strike deal to expedite rare earth shipments amid trade tensions

Independent Singapore

a day ago

Business
Independent Singapore

US and China strike deal to expedite rare earth shipments amid trade tensions

WASHINGTON/BEIJING: China and the United States have reached an agreement to fast-track the delivery of rare earth elements to the US, a White House official confirmed on Thursday (June 26). Rare earth breakthrough in Geneva According to The Guardian report, the breakthrough comes amid new initiatives to reduce a years-long trade conflict between the world's two biggest economies. During the trade talks in Geneva this May, Beijing decided to repeal some non-tariff barriers levied since April 2, which had hindered exports of essential materials indispensable to US businesses. A city in China's Inner Mongolia region, Baotou, recognised as the worldwide centre for rare earth mining and processing, has been the focal point of this geopolitical power struggle. China's control over these materials, crucial for aerospace, automotive, semiconductor, and defence applications, has given it substantial power in trade talks. A senior White House official disclosed that the latest development marks 'an additional understanding for a framework to implement the Geneva agreement', which intends to re-establish and accelerate rare earth deliveries to the US. See also Vicky Kaushal tests positive for Covid-19, in home quarantine Trump hints at broader deal, including India President Donald Trump, speaking on Thursday, confirmed that a deal had been reached with China, although details were not mentioned. He also hinted at the likelihood of a separate contract that could 'open up' India to additional trade alliances. Although no official particulars on the India deal have been shared, it indicates a larger plan to expand the US supply chain and reduce dependence on China for essential resources. In the meantime, US Commerce Secretary Howard Lutnick, said, 'They're going to deliver rare earths to us,' adding that the US will scale back countermeasures once deliveries start again. Fragile progress, lingering tensions Notwithstanding the new development, pressures remain high. China has imposed stringent export controls on rare earths, partly because of concerns about their possible use in US military applications. This has deferred licensing and interrupted global supply chains. The US has responded with its own set of export limitations, aiming at semiconductor technology and aerospace gear. Earlier, Reuters reported that China had granted provisional export authorisations to rare earth providers doing business with top US carmakers, indicating a probable loosening of restrictions. Along similar lines, President Trump cited a wide-ranging arrangement under which China would continue shipments of rare earth magnets in exchange for the US welcoming Chinese learners to American universities. This shows how geopolitical discussions now extend well beyond conventional trade issues. Even though this new agreement signifies a step forward, it accentuates the delicate and multifaceted path ahead as Washington and Beijing try to recaibrate one of the world's most significant economic relationships.

China to Approve Exports of ‘Controlled Items' to U.S.

Wall Street Journal