Critical Metals Corporation shares have surged over 100% in two trading days following escalating tensions between the United States and China over rare earth mineral exports and trade restrictions. The dramatic price movement reflects investor concerns about supply chain security for materials essential to defense, technology, and energy infrastructure applications.

The rally began after President Trump threatened additional tariffs on Chinese goods in response to Beijing's restrictions on rare earth exports, highlighting America's dependence on foreign sources for critical minerals. China currently controls approximately 90% of global rare earth refining capacity, creating strategic vulnerabilities for US industries requiring these materials for advanced manufacturing and clean energy technologies.

Critical Metals has benefited from speculation regarding potential government investment, following reports that the Trump administration is considering equity stakes in domestic rare earth producers. The administration has already taken positions in MP Materials and Lithium Americas as part of efforts to strengthen American mineral supply chains and reduce foreign dependencies.

The company's outperformance relative to other mining stocks also coincides with JPMorgan's announcement of significant investments in critical minerals and mining sectors as part of a broader national security initiative. Market analysts note that establishing strategic reserves for rare earth materials has become increasingly important for economic and defense planning, particularly as geopolitical tensions continue affecting global commodity flows.