MP Materials, Albemarle lead huge rally in rare earth stocks on U.S.-China tensions

[Lithium abstract concept]
Olemedia/E+ via Getty Images

Albemarle (NYSE:ALB [https://seekingalpha.com/symbol/ALB]) +7.1% as one of the largest gainers on the S&P 500, and MP Materials (NYSE:MP [https://seekingalpha.com/symbol/MP]) +24.1% to an all-time high $93.50, in early trading Monday, as fresh tensions between the U.S. and China [https://seekingalpha.com/news/4503490-rare-earth-stocks-surge-on-us-china-tensions-arafura-soars-27-australian-strategic-materials-jumps-42] over the latter's exports of critical minerals prompted bets on alternative suppliers.

Also, USA Rare Earth (USAR [https://seekingalpha.com/symbol/USAR]) +32.6%, TMC the metals company (TMC [https://seekingalpha.com/symbol/TMC]) +27.1%, Critical Metals (CRML [https://seekingalpha.com/symbol/CRML]) +27.1%, Energy Fuels (UUUU [https://seekingalpha.com/symbol/UUUU]) +25.5%, United States Antimony (UAMY [https://seekingalpha.com/symbol/UAMY]) +23.4%, Trilogy Metals (TMQ [https://seekingalpha.com/symbol/TMQ]) +16.3%, Lithium Americas (LAC [https://seekingalpha.com/symbol/LAC]) +15.6%, NioCorp Developments (NB [https://seekingalpha.com/symbol/NB]) +14.7%, Lithium Argentina (LAR [https://seekingalpha.com/symbol/LAR]) +14.6%, Ramaco Resources (METC [https://seekingalpha.com/symbol/METC]) +10.6%, Uranium Energy (UEC [https://seekingalpha.com/symbol/UEC]) +10.1%, Cameco (CCJ [https://seekingalpha.com/symbol/CCJ]) +8.9%, Denison Mines (DNN [https://seekingalpha.com/symbol/DNN]) +7.6%, NexGen Energy (NXE [https://seekingalpha.com/symbol/NXE]) +6%, Lynas Rare Earths (OTCPK:LYSDY [https://seekingalpha.com/symbol/LYSDY]) (OTCPK:LYSCF [https://seekingalpha.com/symbol/LYSCF]) on Monday, after all closed higher on Friday.

The moves largely stem from President Trump's statement Friday that the U.S. would retaliate against China over rare earth export controls, although he dialed back tensions a bit on Sunday.

A news report Sunday said Australia is considering the introduction of mandated floor prices for critical minerals and funding for new rare earth projects as part of a proposed resources deal with the U.S.

ETFs: (NYSEARCA:LIT [https://seekingalpha.com/symbol/LIT]), (ILIT [https://seekingalpha.com/symbol/ILIT]), (BATT [https://seekingalpha.com/symbol/BATT]), (NYSEARCA:URA [https://seekingalpha.com/symbol/URA]), (NLR [https://seekingalpha.com/symbol/NLR]), (URNM [https://seekingalpha.com/symbol/URNM])

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