Rare Earth Stocks Retreat Despite Strong NdPr Prices as Geopolitics Reshapes Investment Risk

Highlights

• Rare earth equities are declining even as NdPr prices strengthen, signaling valuation compression driven by geopolitical risk rather than fundamentals.
• China's control over separation, metallization, and alloy production remains a strategic bottleneck that warrants separate valuation from upstream mining assets.
• Washington's $110/kg MP Materials price floor and unresolved Section 232 findings add policy uncertainty that could support or destabilize domestic rare earth investment.
• REEx argues the real opportunity lies in identifying commercially viable supply chains—not simply acquiring undervalued deposits—that can withstand policy reversals and Chinese competition.