The Compound
Money and Marriage
11/1/2025, 1:01:27 PM
Economic Summary
- Rare earth metals are critical inputs for smartphones, electric vehicles, wind turbines, and defense systems; growing clean-energy and tech adoption will increase long-term demand for these materials.
- China currently dominates production and refining capacity, creating supply-chain and national-security vulnerabilities that raise geopolitical risk and potential price volatility for companies in this space.
- Governments and firms worldwide are racing to build independent supply chains and invest across mining to advanced manufacturing, and investors can access this thematic trend via VanEck's REMX ETF.
Bullish
- Rising demand from EVs, smartphones, wind turbines, and defense supports rare-earth demand.
- Global efforts to diversify supply chains are accelerating investment across mining and manufacturing.
- REMX offers investor access to a broad basket benefiting from this secular trend.
Bearish
- Concentration of rare-earth production in China creates geopolitical and supply-chain risk.
- Trade restrictions or export controls could sharply disrupt supply and prices.
- Returns may lag if new non-China supply doesn't scale quickly enough.
Bullish tickers
REMX
Bearish tickers
REMX
REMX
Bullish
Global push to secure rare-earth supply chains and rising demand from tech, EVs, and defense supports long-term upside for REMX.
Bearish
Concentration of rare-earth production in China creates supply and geopolitical risks that could hurt REMX if disruptions or policy changes occur.
People mentioned
Doug BonaparteHeather BonaparteMichaelBenEve Rodsky