Interesting view30 Oct 2025 08:04
So the loggerhead between China and USA seems to be broken now. This may not be the best news for REE. Markets are funny, I think the stock will go sideways for a while.
As we know the trade war between China and US has put spotlight on rare earths, the minerals that are used in the making of electric cars, computer hard drives, TV screens, jet engines, other electronics and military weapons.
Most are abundant in nature, but they are known as rare because it is very unusual to find them in a pure form, and they are very hazardous to extract.
China has a near monopoly on extracting rare earths as well as on refining them, which means it dominates the supply chain and has the capacity to decide which companies can and cannot receive supplies of rare earths.
China had tightened its grip over rare earth exports in recent months - a move that dealt a major blow to the US, whose industries are heavily dependent on imports of the precious metal. Analysts had said China was using its dominance in the industry as a key bargaining chip in trade talks.
Trump has now said the issue over the trade of rare earths is "settled" - but the details of this are still unclear.