Critical mineral markets face escalating geopolitical tensions as China tightens export controls while the US secures domestic supply chains. In November 2025, silver joined the US critical minerals list before China banned its exports, triggering a fourfold price surge. The Pentagon subsequently became the largest shareholder in MP Materials, America’s only fully integrated rare earth magnet producer. China retaliated in June 2026 by adding MP Materials, USA Rare Earth, and eight other US military-linked entities to its export-control blacklist.
The supply chain remains highly concentrated, with China controlling over ninety percent of refined rare earths and magnets, strengthened by African mining acquisitions. JP Morgan forecasts sixteen percent lithium demand growth this year, driven primarily by electric vehicle production requiring six times more minerals than conventional cars. Data centers and green energy projects further intensify demand, threatening potential market deficits.
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FXnCO Insight
** Traders should monitor rare earth equities and lithium futures for volatility as US-China export restrictions escalate supply chain risks across EV and tech sectors.
Source: Finance Magnates