The United States is strengthening its rare earths supply chains to reduce dependence on China, which dominates the market. Rare earth materials are crucial not only for AI and electric vehicles but also extensively used in defense technology, such as the F-35 fighter jet's electronics, propulsion, and airframe. This push highlights the strategic importance of rare earths in national security and defense spending. Investors can gain exposure to this trend through the Sprott Rare Earths Ex-China ETF (REXC), which focuses on companies outside China involved in rare earths production, tapping into commodities, defense, and ex-China market themes.
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