China tightens rare earth exports, boosting U.S. miners

Shares of U.S. rare earth miners jumped sharply this week after Beijing tightened controls on exports of the critical minerals and executives signaled ongoing talks with the federal government, fueling investor bets that Washington will bolster domestic supply chains. The moves were concentrated on Thursday and extended into Friday trading, lifting several small-cap mining stocks by double digits on expectations of higher prices and possible government support.

China’s Commerce Ministry announced an expansion of export controls that added five rare earth elements to its regulated list and extended licensing requirements to a range of mining, refining and manufacturing technologies. The rules also require exporters to obtain a Chinese license if their products contain Chinese-sourced rare earths, even when transactions do not involve a Chinese company. The measures intensify Beijing’s oversight of materials used in semiconductors, defense systems and high-performance magnets.

U.S.-listed rare earth companies were among the biggest beneficiaries. MP Materials, the largest producer in the Western hemisphere, and junior producers including USA Rare Earth and Ramaco Resources all...