Critical Metals (CRML) Stock: Trade War Sparks 27% Pop in Rare Earth Miner

TLDR

• Critical Metals Corp (NASDAQ:CRML) shares jumped 27% in premarket trading after announcing a 10-year off-take agreement with REalloys Inc. for 15% of rare earth concentrate from its Tanbreez Project in Greenland.
• MP Materials Corp (NYSE:MP) climbed 8% while USA Rare Earth Inc (NASDAQ:USAR) gained 10-12% as U.S. rare earth stocks extended their rally from Monday’s session.
• JPMorgan Chase announced up to $10 billion in direct equity investments targeting critical minerals and frontier technologies to address national security concerns.
• President Trump threatened 100% tariffs on Chinese imports starting November 1 in response to China’s tightened rare earth export controls, though he later softened his stance.
• China controls nearly 70% of global rare earth mining and processes almost 90% of these materials, making the trade tensions particularly important for U.S. supply chains.

Critical Metals Corp shares jumped 27.4% in Tuesday premarket trading. The move extended a rally that saw the stock close up more than 55% on Monday.

The surge followed news that REalloys Inc. signed a letter of intent for a 10-year off-take agreement with Critical Metals. REalloys plans to purchase 15% of the expected rare earth concentrate from the company’s Tanbreez Project in Southern Greenland.

The Tanbreez Project represents one of the world’s largest heavy rare earth deposits. The deal with REalloys provides long-term demand visibility for the project’s output.

Other U.S. rare earth miners also posted strong gains. USA Rare Earth Inc. climbed 12.36% in premarket trading.

MP Materials Corp rose 8.67% at last check. The company has drawn attention from billionaire investor Chamath Palihapitiya for its strategic importance.

The rally comes as U.S.-China trade tensions escalate over rare earth supplies. China announced a new framework last Thursday for restricting rare earth exports.

President Trump responded on Friday by threatening 100% tariffs on Chinese imports starting November 1. He said the White House would also impose export controls on critical software.

JPMorgan’s Critical Minerals Push

JPMorgan Chase added fuel to the rally by announcing direct equity investments of up to $10 billion. The initiative targets national security needs in sectors including critical minerals and frontier technologies.

CEO Jamie Dimon stressed the importance of reducing U.S. dependence on unreliable sources of critical minerals. The bank plans to assist companies through advisory services, financing, and direct investments.

The announcement aligns with growing concerns about supply chain vulnerabilities. China produces nearly 70% of the world’s rare earths from mines.

The country also processes almost 90% of these materials globally. This includes rare earths imported from other countries for refining.

China’s Supply Chain Dominance

Beijing’s tightened export controls represent a warning to Western countries. The move reflects deepening mistrust between China and the United States.

Western officials have repeatedly flagged China’s supply chain dominance as a strategic challenge. Critical mineral demand is expected to grow as the clean energy transition accelerates.

The rare earth sector has become a focal point in the broader U.S.-China relationship. Monday’s trading session saw Critical Metals close up more than 55%.

MP Materials rose 21% on Monday while USA Rare Earth climbed 18%. Tuesday’s premarket action suggests continued investor interest in domestic rare earth production.

The off-take agreement between Critical Metals and REalloys provides a concrete example of supply chain diversification efforts. Companies are seeking alternatives to Chinese rare earth supplies.

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