Rare earth metal stocks have shown renewed momentum after a decisive breakout last week, a notable shift occurring during the typically quiet period of the year. The VanEck Rare Earth and Strategic Metals ETF (REMX) has surged nearly 90% year-to-date, with much of this gain realized in the second half of 2023 as interest in the sector re-emerges.
Key drivers for this resurgence include supply chain security amid geopolitical tensions with China, which dominates global production and export of rare earths. Demand for these materials has expanded due to their critical role in AI infrastructure, electrification, and defense technologies. Currently, notable stocks in the sector include Albemarle Corporation (ALB), Sigma Lithium Corporation (SGML), and Lithium Americas (Argentina) Corp. (LAR), which are all showing positive price momentum as the rare earth theme potentially enters its next growth phase.
