Curated News
By: NewsRamp Editorial Staff
February 23, 2026
Global Race for Critical Minerals Intensifies as Nations Secure Supply Chains
TLDR
- Investors can gain advantage by investing in critical minerals through SETM ETF, which offers diversified exposure to companies poised to benefit from supply constraints and geopolitical shifts.
- The U.S. and allies are establishing frameworks and partnerships, like the DoD's 15% stake in MP Materials, to build secure supply chains for rare earths and critical minerals.
- Securing critical minerals through international cooperation reduces dependence on single nations, fostering global stability and supporting sustainable energy transitions for a better tomorrow.
- Rare earths like neodymium are essential not just for EVs but also for jet engines, missiles, and radar systems, highlighting their diverse technological importance.
Impact - Why it Matters
The competition for critical minerals directly impacts consumers, investors, and national security. For consumers, supply chain disruptions could increase costs for electric vehicles, electronics, and renewable energy technologies that rely on these materials. For investors, this represents both risk and opportunity—companies involved in critical minerals exploration and production may benefit from government support and rising demand, while traditional supply chains face geopolitical vulnerabilities. On a national level, dependence on foreign sources for defense-critical materials like rare earths used in missiles, radar, and jet engines creates strategic weaknesses that governments are now urgently addressing. The energy transition's success hinges on secure mineral supplies, making this not just an economic issue but one affecting climate goals and technological sovereignty.
Summary
The escalating geopolitical tensions over rare earths and critical minerals have created a seismic shift in global supply chain strategies, with China's recent expansion of export controls on these materials serving as a wake-up call for developed nations. This move highlighted China's dominant control over essential inputs like rare earths, graphite, and manganese, which are crucial for everything from electric vehicles and energy storage to defense systems, jet engines, and advanced manufacturing. In response, the United States has taken assertive steps to secure its access, including signing a critical minerals framework with Australia and forming a public-private partnership with MP Materials Corp., where the Department of Defense now holds a 15% ownership stake. These actions reflect a broader trend of resource nationalism, with the U.S., EU, Japan, and G7 nations implementing strategies involving subsidies, domestic mining incentives, and stockpiling to reduce dependence on rival nations.
Against this backdrop of growing demand and supply chain vulnerabilities, the Sprott Energy Transition Materials ETF (NASDAQ: SETM) emerges as a strategic investment vehicle designed to capitalize on these market dynamics. Rather than focusing on a single commodity or company, SETM offers diversified exposure to upstream miners, explorers, developers, and refiners of critical materials like uranium, lithium, copper, nickel, cobalt, graphite, manganese, rare earths, and silver. This approach aims to capture broad market opportunities while mitigating single-commodity risks, particularly important given the long lead times for new mining projects and potential geopolitical disruptions that could create upward price pressure. The ETF seeks to track the performance of the Nasdaq Sprott Critical Materials Index, providing investors with pure-play equity exposure to this essential sector.
The investment landscape for critical minerals is fundamentally changing as governments prioritize supply chain security and companies position themselves to benefit from the energy transition. With the first round of investments already announced through initiatives like Canada's critical minerals production alliance, and with frameworks like the United States-Australia agreement accelerating allied mineral supply chain development, the stage is set for significant growth in this sector. For those looking to navigate this complex but promising field, resources like the Sprott Energy Transition Materials ETF offer a way to participate in what many see as an emerging area of opportunity, where maintaining exposure could yield substantial benefits in the years ahead as global demand continues to rise and supply constraints potentially intensify.
Source Statement
This curated news summary relied on content disributed by NewMediaWire. Read the original source here, Global Race for Critical Minerals Intensifies as Nations Secure Supply Chains
