Critical Minerals: Top Stocks to Navigate Geopolitical Risk

How to Profit from Supply Chain Chaos: Cash Flow, Tactical Dips, and the Non-China Premium

If you look at the charts, you’ll see a clear anomaly: the shares of rare earth metal (REM) mining companies are growing regardless of their production stage or even current profitability.

This explosive growth is a direct parallel to what we observed in the nuclear energy sector, where geopolitics and state strategy have outweighed traditional financial analysis. Friction between the US and China has transformed REMs into a critical element of national security.

The proof is in the numbers: the unit share of USA Rare Earth (USAR) has surged by over 150% in a year. This growth was not caused by a sudden jump in metal prices but by Washington’s strategic investments. The White House (WH) already holds:

• A 15% stake in rare earth producer MP Materials (NYSE:MP).

• A 10% stake in Lithium Americas Corp. (NYSE:LAC).

• A 10% stake in Trilogy Metals Inc. (NYSE:TMQ).

Clearly, the sector is not limited to these players. We will now look at what else is on the market to make your investment decision easier and help you understand how the market values these stocks after their massive growth.

Source: USAR

Geopolitics vs. Finance: Why Classic Metrics No Longer Work

Investing in this sector no longer lends itself to traditional Price-to-Earnings (P/E) or Net Present Value (NPV) analysis. You must make decisions based on an asset’s strategic value.

Following such gigantic growth, the market primarily evaluates these stocks as an “insurance policy” for Western governments and manufacturers (from EVs to defense), rather than just a commodity company. This means that:

✅ Premium for Integration: Companies that control the processing and separation of REMs (and not just ore mining) receive a colossal premium.

✅ Supply Chain Reliability: Belonging to an “allied” jurisdiction (USA, Australia, Canada) is now more valuable than high margins.

✅ Tie to Government Contracts: The prospect of securing long-term, guaranteed contracts with US/EU defense or energy departments is more important than current quarterly reports.

Rare Earth Elements (REE) Overview

The term Rare Earth Elements (REE) refers to a group of 17 chemical elements, including the 15 lanthanides (Lanthanum through Lutetium) plus Scandium and Yttrium.