Weeks into the war in Iran, many investors have set their sights on oil prices and are attempting to navigate what could be a devastating impact on global energy supplies. But investors who neglect to take a broader view of the war's implications may not appreciate the potential disruption to the rare-earth and critical minerals market as well. According to estimates by the Iranian government, the country holds more than $27 trillion in mineral reserves. Further, with China continuing to dominate global rare-earth resources, if the conflict draws that nation closer to Iran, it may further disrupt the flow of those resources to the United States and elsewhere.
There are U.S. rare-earth producers operating domestically, but the country has historically relied heavily on imported materials. Notably, the U.S. military announced in late February that securing domestic rare-earth elements is a key national security priority. The companies below may be best positioned to achieve that goal.
