Rare earths are crucial for everything from EVs to TVs. Here’s how to invest in them
Rare earth elements are essential for modern technologies including electric vehicles, defence systems, and consumer electronics, with China dominating global production and refining. Due to export restrictions by China, countries like Canada and the U.S. are seeking alternative sources and supply chain independence. Investors can gain exposure through ETFs such as REMX, EART, and the China-excluded REXC, though the sector carries high risk and volatility.
- ▪China controls 69% of global mined rare earth production and 90% of refined production as of 2024.
- ▪China introduced export controls on rare earths in April and October 2025, citing national security concerns.
- ▪Canada holds over 15.2 million tonnes of rare-earth oxide resources but is not yet a commercial producer.
- ▪The VanEck Rare Earth and Strategic Metals ETF (REMX-N) gained 126.39% in one year but has an average annual return of -3.47% since 2010.
- ▪The Sprott Rare Earths Ex-China ETF (REXC-Q) focuses exclusively on non-Chinese rare earth companies to address supply chain security.
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Open this photo in gallery:Bags containing a mixture of rare earth elements at the facility of Australian mining firm Lynas in eastern Malaysia's Gebeng on April 8.ARIF KARTONO/AFP/Getty ImagesShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountEvery government wants access to rare-earth elements (REEs). Most investors don’t know exactly what they are or how to invest in them.To cite Reuters, REEs possess “unique magnetic, luminescent, and defence applications.” Neodymium is a rare-earth element essential for producing the strongest permanent magnets, which are widespread in defence technologies, hard drives, medical imaging devices, electric-vehicle motors, wind turbines and more.Without REEs, we wouldn’t have smartphones or TV sets.
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