What alchemy lies behind producers of rare earth elements? The thimble-sized universe of listed companies — dominated by MP Materials and Lynas — has gained about $17bn in market value this year to reach $24bn. That’s pretty impressive given they operate in a market with an annual turnover of $6.5bn, according to Goldman Sachs, and which is dominated by Chinese players.
Rare earths, like the broader universe of critical minerals, got a justified price boost after Washington stepped into the market. The US government, fretting over China’s 70 per cent share of mining and 90-plus per cent share of refining, took a minority stake in MP Materials in July. Private money quickly followed: Apple pledged to buy $500mn worth of magnets just days later.
