VanEck Rare Earths ETF Slumps Over 25% as US‑China Mineral Conflict Intensifies

The VanEck Rare Earths ETF fell sharply, losing about 26% of its value in a 30‑day period and closing near €11.10 per share. Technical indicators showed the fund was deeply oversold, with a 14‑day RSI around 25.8. The decline occurs against a backdrop of heightened competition between the United States and China for control of critical minerals. The U.S. government announced a $12 billion “Project Vault” reserve and an export ban on e‑waste containing critical minerals, while defense contractors must cease sourcing Chinese rare‑earths by 2027. Meanwhile, Lynas Rare Earths Ltd secured AUD 29 million in financing to support a Vietnamese metal‑processing plant, a move that could boost the sector’s downstream capacity. Lynas holds roughly 6.6% of the ETF’s assets, providing a modest positive counterpoint to the fund’s overall weakness.