From Yahoo Finance: 2025-05-03 12:45:00

Rare earth metals are crucial for AI tech, with a concentrated market and potential price spikes due to high demand. China dominates the rare earth trade, holding a near monopoly, and can use this leverage in trade disputes. Other countries like Chile and Guinea are increasing their foothold in the industry.

The US faces vulnerability to rare earth supply constraints, especially with China’s export controls. However, there is potential for other countries to establish supply chains and gain geopolitical leverage. A recent deal with Ukraine grants the US access to essential metals and minerals for AI technology.

Investors may be overlooking the significance of rare earth metals, which are essential for various technologies. Demand is expected to surge by 500% by 2050, potentially making these minerals more valuable than oil and gas. While prices have declined recently, this could hinder future investment to meet growing demand.



Read more at Yahoo Finance: ‘The new battlegrounds for AI supremacy:’ 3 things to know about the trade in rare earth minerals