News that China may be seeking to restrict exports of rare earths have sent prices of the metals, and shares of western miners, sharply higher this week. That has added to six months of big rises as investors recognised their importance to countries’ desire to rebuild their economies from Covid in a greener way.
But what are these elements, and which UK stocks can you buy to get a slice of the action?
What are rare earth metals?
From electric cars to offshore windfarms to defence aerospace, rare earth elements are vital for use in magnets, microchips, batteries and other uses that will be critical for future production of electricity generating and electric vehicles.
Pensana plc (LON:PRE) explores and mines neodymium, praseodymium, and rare earth minerals. The company is looking to establish the world’s first fully sustainable magnet metal rare earth oxide producer at the Saltend Chemicals Park in the Humber Local Enterprise Partnership Yorkshire, UK.