The global race for critical minerals and rare earths is heating up, with countries and companies scrambling to secure the raw materials that underpin everything from electric vehicles to advanced defense systems. As the world pivots toward clean energy and digital technologies, the stakes for controlling these vital resources have never been higher. Recent developments across North America, Australia, and China are reshaping the landscape—and investors, policymakers, and industry leaders are watching closely.
North America is witnessing a surge in rare earth and strategic metals production, spearheaded by companies like MP Materials, Albemarle, and Lithium Americas. According to a recent report by VanEck, policy support and the relentless demand for clean energy are fueling long-term growth in rare earth investments. The trade war with China—especially the tit-for-tat tariffs and export restrictions—has only accelerated this U.S. rare-earth revival. As of November 19, 2025, the momentum shows no signs of slowing.
But North America isn’t alone in this push. Global metals giants such as Lynas, Pilbara Minerals, and Iluka Resources are expanding rare earth supply chains outside China’s orbit. The aim? To reduce dependency on a single source and ensure that industries critical to national security and economic growth aren’t left vulnerable to geopolitical shocks. As VanEck outlines, these moves are part of a broader trend, with countries around the world stepping up efforts to secure their own supplies of lithium, nickel, cobalt, and other strategic metals.
Australia, long a powerhouse in mining, is now leveraging its position as a strategic supplier of critical minerals. After signing a landmark agreement with the United States in October 2025, Australia has seen heightened interest in its critical minerals reserve from allies including the European Union, Japan, South Korea, and Singapore. The $8.5 billion project pipeline, as reported by Reuters, is designed to counter China’s dominance in minerals essential for industries ranging from artificial intelligence to advanced defense systems.
Australia’s Minister for Trade and Tourism, Don Farrell, highlighted the growing appeal of the country’s strategic reserve. "Having seen what we’ve done with the Americans, I think there’s increased interest from the Europeans, from the Japanese, from the South Koreans, Singaporeans, in what we’re doing in this space," Farrell told Reuters during the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) meeting in Melbourne. He added, "Particularly the Europeans don’t want to miss out."
The October deal between Canberra and Washington not only leverages Australia’s strategic reserve—supplying metals like rare earths and lithium, which are particularly vulnerable to disruption—but also sets a minimum price floor for critical minerals. The rationale is clear: without a price floor, it’s tough for companies outside China to compete, given the Asian giant’s massive scale and lower production costs. Still, not everyone is on board. Japan, for instance, was an early investor in Australia’s Lynas and has already secured supply. As Farrell put it, "I imagine those people, in that situation, might be the ones that might be arguing against moving down this path. But I think if we’re going to end up in a situation where people can reliably invest in these sorts of developments, then there has to be some security at the end of it."
These developments come as Australia and the EU revive talks for a sweeping free trade agreement—an effort that had previously stalled in 2023. Australia is pressing to boost its agricultural exports by removing EU tariffs and expanding quotas, while Europe is likely to gain greater access to Australia’s critical minerals industry. Farrell acknowledged that familiar hurdles remain, but the pressure to reach a deal is mounting. "Given the changed international circumstances of trade, the adults in the room have to demonstrate to the rest of the world that it is still possible to do free and fair trade and to reach agreements," he said.
Meanwhile, China remains a dominant force in the global metals market, particularly in zinc. As reported by Mining.com, Chinese zinc producers are ramping up exports in response to a global supply squeeze. China, which accounts for more than half the world’s zinc production, is on track for an annual output record. In October 2025 alone, the country’s zinc output hit an all-time high of 665,000 tons. Refined zinc exports, which had been minimal for much of the past three years, surged in October and are expected to climb even higher in November and December—potentially reaching a combined 50,000 tons for those two months, a fivefold increase from October’s 10,000 tons.
This uptick in Chinese exports comes as global inventories of zinc have dwindled, driving international prices higher. In October, spot zinc’s premium over three-month prices on the London Metal Exchange spiked to more than $300 a ton, signaling a sharp supply shortfall. By November 19, the spread had narrowed to $130 a ton, but Chinese exports remained economically attractive. Zinc futures prices mirrored this volatility, with the LME price at $2,995 a ton and Shanghai Futures Exchange prices also ticking upward.
China’s ability to ramp up production and exports, even as its domestic construction sector faces headwinds from a protracted property slump, underscores the country’s influence over global supply chains. According to Zijin Tianfeng Futures Co., the surplus generated by China’s expanded capacity is likely to fuel exports into the first quarter of 2026, especially as domestic stockpiles typically build around the Lunar New Year.
The interplay between these major players—North America, Australia, China, and the EU—highlights a new era of competition and cooperation in the critical minerals sector. Policy interventions, such as Australia’s price floor and strategic reserve, are reshaping market dynamics. Meanwhile, the ongoing trade war and supply chain disruptions are prompting countries to rethink their dependencies and invest in diversified, resilient supply chains.
For investors, the message is clear: the rare earth and strategic metals sector is no longer a niche play. It’s a battleground for economic security, technological leadership, and geopolitical influence. Companies like MP Materials, Albemarle, Lithium Americas, Lynas, Pilbara Minerals, and Iluka Resources are at the forefront of this transformation, but the story is far from over. As clean energy demand and technological innovation continue to surge, the global scramble for critical minerals is set to intensify.
With governments, companies, and investors all seeking a stake in this vital sector, the coming years will test the world’s ability to balance competition with cooperation—and ensure that the materials powering tomorrow’s technologies remain accessible, sustainable, and secure.
