Critical Minerals Stocks Fall Premarket As US, China Near Trade Deal

• U.S. Treasury Secretary Scott Bessent said on Sunday that Beijing is expected to delay the implementation of its licensing regime for rare earth minerals and magnets by a year.
• China dominates over 90% of refined rare earth, which are used in a wide range of applications, ranging from semiconductors to missile defense systems.
• Trump and Xi are scheduled to meet on Thursday to take the final call on a trade deal.

Critical Minerals stocks fell in premarket trading on Monday after the U.S. and China agreed to a framework agreement of a trade deal, which eased some concerns about Chinese critical minerals exports.

MP Materials fell 5.3%, Critical Metals stock slipped 8.5%, USA Rare Earth, Lithium Americas, and Trilogy Metals fell between 4.3% and 7%.

Beijing To Pause Rare Earth Export Restrictions, Bessent Says

According to a Reuters News report, U.S. Treasury Secretary Scott Bessent said on Sunday that Beijing is expected to delay the implementation of its licensing regime for rare earth minerals and magnets by a year while the policy is reconsidered.

China dominates over 90% of refined rare earth, which are used in a wide range of applications, ranging from semiconductors to missile defense systems. The latest dispute between the two countries began after China imposed export curbs on rare earths, especially to chipmakers and defense firms.

Rare earths were part of a broader framework agreement between the two sides on the sidelines of an Association of Southeast Asian Nations meeting in Kuala Lumpur, Malaysia.  “We are moving forward to the final details of the type of agreement that the leaders can review and decide if they want to conclude together,” Jamieson Greer, the United States trade representative, said to reporters, according to a New York Times report.

While China’s top trade negotiator, Li Chenggang, described the talks between the two countries as “candid and in-depth discussions” on the trade deal, adding that the two sides had reached a “preliminary consensus.” Trump and Xi are scheduled to meet on Thursday to take the final call on a trade deal.

What Is Retail Thinking?

Retail sentiment on Stocktwits about MP Materials, USA Rare Earth, and Lithium Americas moved to ‘bearish’ territory at the time of writing.

However, some traders were looking to buy the dip, citing fundamentals. “I’m buying the dips. U.S. won’t depend on China regardless of trade deals. It would be fool[ish] of us to repeat the same mistake,” one trader said about MP stock.

“The core thesis for $USAR isn’t built on day-to-day politics — it’s built on structural demand, domestic policy momentum, and a longer-term shift toward U.S. mineral independence,” another user wrote.

What Has The US Done To Navigate The Trade Restrictions?

The White House has stepped up its efforts over the past months to increase domestic production of critical minerals. The U.S. has taken stakes in companies such as Lithium Americas, MP Materials, Critical Metals, and Trilogy Metals.

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