"Rare earths are rapidly evolving into a strategic asset class as nations strive to reduce reliance on China, which retains overwhelming dominance in mining and refining capacity. Driven by surging demand from critical industries and heightened government intervention, the market infrastructure is maturing to meet the challenge. A pivotal milestone in this evolution is the CME Group's plan to launch rare earth futures contracts."
"Establishing a transparent price benchmark will enable complex financial strategies, while the creation of derivatives promises to unlock investment capital and allow stakeholders to hedge against volatility. Simultaneously, Washington is strengthening its rare earths strategy. The U.S. has formalized strategic stockpiling through Project Vault, backed by USD 12 billion, while the 2026 Critical Minerals Ministerial united 54 countries under a coordinated framework to diversify supply chains and address pricing power."
Rare earths are emerging as a strategic asset class as countries move to reduce dependence on China’s dominant mining and refining capacity. Market infrastructure is maturing in response to surging demand from critical industries and increased government intervention. The planned launch of CME Group rare earth futures aims to create a transparent price benchmark, enable complex financial strategies, and unlock investment through derivatives while allowing stakeholders to hedge volatility. The United States is formalizing strategic stockpiling via Project Vault with USD 12 billion and coordinating with 54 countries through the 2026 Critical Minerals Ministerial to diversify supply chains. China is reinforcing its leadership through official inspections and policy focus.
Read at London Business News | Londonlovesbusiness.com
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