Two weeks into 2026, and rare earth stocks are already having their main character moment. The sector is experiencing a genuine bull run, fueled by geopolitical anxiety and the kind of aggressive industrial policy that makes investors sit up and pay attention.
The Trump administration has essentially planted a flag on rare earth minerals, calling them critical to national security. And investors? They're responding exactly how you'd expect, piling into anything with exposure to the space.
Critical Metals Corp. (CRML) is leading the charge with a spectacular 100% gain since January 1st. The company's Tanbreez project in Greenland has become a focal point as speculation swirls around U.S. interest in the Arctic territory.
But the momentum isn't isolated to one stock. Check out what's happening across the domestic rare earth landscape:
MP Materials Corp. (MP) has climbed 27% in 2026 on heavy volume. As the only major U.S. producer of rare earths, it's positioned as the clearest domestic play in the sector.
USA Rare Earth, Inc. (USAR) is up 45% year-to-date, riding positive developments at its Round Top heavy rare earth site.
Trilogy Metals Inc. (TMQ) has gained 22% this year, bolstered by the direct U.S. government equity investment it received in 2025.
Lithium Americas Corp. (LAC) has rallied 32% in 2026 alone as critical minerals became one of the year's hottest trades.
Even the VanEck Rare Earth and Strategic Metals ETF (REMX), which tracks the entire sector, is up 20% year-to-date.
The Greenland Question
One major catalyst behind this rally is President Donald Trump's persistent interest in acquiring Greenland. This isn't just idle chatter—the White House has confirmed that purchasing the territory remains "an active discussion."
Press secretary Karoline Leavitt said last Tuesday that Trump views Greenland as critical to the U.S. strategy for countering Russia and China, adding that "all options are always on the table" regarding how an acquisition might happen.
Secretary of State Marco Rubio is scheduled to meet with Danish and Greenlandic officials this week. For their part, Greenland's leaders have been crystal clear: "Greenland has never been for sale and never will be for sale." But the conversation continues anyway, and markets are treating it seriously.
China Turns the Screws
While Washington talks about mineral independence, Beijing is reminding everyone why that matters. In early January, China tightened export restrictions on dual-use rare earth materials to Japan.
The move was retaliation for Tokyo's stance on Taiwan, but the implications reach far beyond one bilateral relationship. China controls roughly 90% of refined rare earths globally, and it's increasingly willing to weaponize that dominance. The new restrictions have rattled global tech and defense sectors, which depend heavily on these materials for everything from semiconductors to military hardware.
It's a clear signal: China views rare earths as a strategic lever, and it won't hesitate to pull it when geopolitics heat up.
Why This Matters
The surge in rare earth stocks isn't just momentum chasing. It reflects a fundamental shift in how Washington thinks about supply chains and national security. Breaking away from Chinese control of rare earth minerals has become a top priority, with massive government backing to match the rhetoric.
With supply chains under pressure and industrial policy pointing decisively toward domestic production, the rare earth sector looks positioned to be one of 2026's defining trades. Whether that momentum can sustain itself depends on how quickly the U.S. can turn political will into actual production capacity—but for now, investors are betting big that it will.
