Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTChris ClarkThu, June 4, 2026 at 11:00 AM GMT+2 4 min readInvestors worried about inflation, government debt, geopolitical tensions and market volatility have piled into gold, helping push prices to near-record highs (1). But while gold dominates the headlines, another corner of the commodity market is quietly becoming a strategic priority for governments around the world.On June 1, USA Rare Earth [NASDAQ:USAR] announced plans to invest more than 175 million euros — about $204 million (2) — in France by 2030 to expand its rare-earth metals, alloys and magnet manufacturing operations.Must ReadPrime US real estate was a rich person's game — then something changed. Now everyday Americans are getting a piece of the action for as little as $100Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is goingRobert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this ‘explosion’The investment aligns with efforts by the U.S. government to build supply chains outside of China and secure access to materials considered critical to national security and advanced manufacturing. The project could create more than 300 jobs and may receive support from the French government.The announcement underscores how countries aren’t just competing for oil anymore. They’re scrambling to secure access to the metals and minerals needed to build electric vehicles, semiconductors, wind turbines, data centers, military equipment and artificial intelligence infrastructure.For investors, that raises an intriguing question: could critical minerals become a useful complement to traditional portfolio holdings?Why rare earths suddenly matter so muchDespite the name, rare earths aren’t especially rare. The challenge is processing them.China dominates the global rare-earth industry (3), controlling roughly 70% of mining production and about 90% of processing and refining capacity. It also manufactures the vast majority of the permanent magnets made from those materials.That dominance has become increasingly uncomfortable for Western governments. Over the past two years, Beijing has tightened export controls and imposed new restrictions on certain rare-earth products and technologies, underscoring how dependent many industries remain on Chinese supply chains (4) .The result has been a surge of investments across the U.S., Europe, Canada and Australia aimed at creating alternative sources of supply. USA Rare Earth’s expansion in France is just one example of a broader effort to build a Western rare-earth ecosystem that can compete with China’s stronghold.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info