The global race for rare earths and other critical minerals is picking up pace, and we forecast it will be a key investment theme in 2026 as the United States and China ramp up their competition for the resources that drive today’s economy.
Rare earths have shifted from the fringes of the commodities market to the heart of global strategy.
The fight to control them will influence trade, technology, and investment decisions for years ahead.
Rare earths move from niche to necessity
As I was quoted by Asia Times, Investing.com, Khaleej Times, Market Forces Africa, Korea Times, and Share Café, amongst others, these minerals, crucial for electric vehicles, smartphones, and advanced weapons systems, have long been dominated by China.
China currently controls about 70% of global mining and nearly 90% of processing capacity, leaving manufacturers worldwide highly vulnerable to its policy decisions.
That dominance is now facing challenges, as the Trump administration has made rare earths a national priority, investing heavily in domestic and allied production.
The US has invested in North American mining companies, proposed a government-backed price floor to secure supply, and outlined plans to create a strategic mineral reserve. Permitting processes are being sped up, and environmental regulations are being relaxed to accelerate mine construction under the “mine, baby, mine” policy.
Washington’s actions signal the beginning of a new industrial cycle.
The US aims to regain control of its supply chains and lessen its dependence on Beijing. This effort goes beyond political posturing. It represents the most significant coordinated drive for resource security in a generation.
China’s dominance faces new pressure
Meanwhile, China has strengthened its hold on the market. Beijing has introduced new export controls, mandating companies to secure approval before exporting magnets containing even trace amounts of rare earths sourced from China.
China has also expanded its restricted list, adding five more elements: holmium, erbium, thulium, europium, and ytterbium.
China is demonstrating that controlling supply equates to controlling the market.
In response, the US and its allies are being pushed to develop alternative supply chains, sparking an unprecedented wave of investment across Australia, North America, and parts of Africa. Financial markets are closely tracking these geopolitical shifts.
The investment opportunities are substantial. This represents a multi-year transformation rather than a short-term trend, as infrastructure and refining capacity take time to develop. Investors who position themselves early stand to benefit from the ongoing capital flow into strategic resources.
deVere analysts anticipate ongoing volatility in the sector, driven by government interventions and policy announcements that influence prices.
These markets won’t respond to earnings alone; they’ll be shaped by policy. Every export restriction, government investment, and strategic partnership will affect prices. Such volatility can create opportunities for disciplined investors.
Investment opportunities amid volatility
Diversifying across the supply chain, from mining and refining to recycling technologies, will be crucial. This is about safeguarding the systems that power economies. Investors who understand this are likely to be the long-term winners.
Rare earths sit at the intersection of industrial policy, clean energy, and national security.
The race to control them will shape 2026. The scale of investment already underway highlights how rapidly the world is adjusting to a new economic reality, a once-in-a-generation shift in where value is being created.
To read my previous blog post, click here.