Equities tied to rare earths and other critical minerals weakened on Wednesday following an announcement from U.S. Vice President JD Vance that the United States will move to establish a trading bloc designed to improve access to these commodities.
Speaking at a meeting with delegates from more than 50 countries, Vance outlined plans for a system that would put price floors in place for critical minerals. He also said that many countries had already agreed to join the proposed bloc.
The comments appeared to weigh on share prices across the sector. Reported moves included a 2.4% decline for MP Materials (NYSE:MP), a 6% drop for US Rare Earth (NASDAQ:USAR), a 5.2% fall for Critical Metals (NASDAQ:CRML) and a 6.7% decrease for American Resources (NASDAQ:AREC). Overall, stocks in the rare earths and critical minerals space fell in a range from 1.8% to 7%.
Rare earths and other critical minerals are used widely in modern technologies. The article noted their role in electronics, renewable energy systems and defense applications.
The announcement described a coordinated mechanism intended to enhance access to these materials by creating minimum price levels. According to the vice president, a number of nations represented at the meeting have already signaled agreement to participate in the proposed trading bloc, though further details on membership or implementation were not provided within the scope of the remarks referenced in this report.
Market participants reacted to the proposal with selling across several listed companies focused on extracting and processing the materials in question. The moves reflected investor reassessment of near-term supply, pricing and policy dynamics following the outline of a government-led initiative to influence market outcomes.
This account is limited to the information provided at the meeting and the immediate market reactions cited above.