China’s Mineral Export Shift Sparks Rally: Semiconductor & EV Stocks Primed for Gains

Beijing just handed tech and auto giants an unexpected windfall—with global supply chains breathing a sigh of relief.

Rare earths rush begins

After years of export restrictions, China's policy pivot unleashes critical minerals like gallium and germanium—key ingredients for chips and batteries. Market analysts see immediate upside for firms that survived the supply chain wars of 2023-24.

Wall Street's selective amnesia

Funny how quickly traders forget past shortages when new profit opportunities emerge. Semiconductor stocks already pricing in 18% margin expansion—because nothing teaches fiscal discipline like a decade of artificial scarcity.

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China’s Ministry of Commerce said it will suspend export limits announced in October that covered rare earth elements, lithium battery materials, and related processing tools. It also rolled back bans set in December 2024 on gallium, germanium, antimony, and super-hard materials such as synthetic diamonds and boron nitride. In addition, China has relaxed strict checks on graphite exports to the U.S.

On the American side, the government agreed to cut some tariffs on Chinese goods by 10%, pause new reciprocal tariffs until late 2026, and delay a rule that WOULD have added more Chinese firms to its entity list. The steps mark a short-term trade truce that helps both sides secure steady access to key materials used in chips, batteries, and defense systems.

Who Stands to Gain

Several companies now stand to benefit from this policy shift. Semiconductor producers such as Intel (INTC), Texas Instruments Incorporated (TXN), Qualcomm Incorporated (QCOM), and ON Semiconductor Corporation (ON) rely on gallium and germanium for the fabrication of advanced chips. The rollback could lower costs and ease supply risk.

Rare earth and magnet producers MP Materials Corporation (MP) and Lynas Rare Earths Limited (LYSDY) also stand to benefit. Both rely on Chinese refining and processing steps for magnet-grade metals used in electric vehicles and wind turbines.

Electric vehicle and battery firms, such as Tesla (TSLA), General Motors Company (GM), QuantumScape Corporation (QS), Microvast Holdings (MVST), and Enovix Corporation (ENVX), benefit from smoother flows of lithium and graphite. A more predictable supply could stabilize costs and support expansion plans.

Apple (AAPL) and NextEra Energy (NEE) may also benefit from these advantages. Both rely on rare earths and battery materials for their products and clean energy projects.

In China, battery and mining leaders such as Contemporary Amperex Technology Co. Limited, BYD Company (BYDDF), and China Northern Rare Earth Group High Tech Co. Ltd. benefit from restored global demand and fewer export hurdles. Overall, the rollback offers near-term relief to both sides. Yet, the suspension lasts one year, and both governments still view critical minerals as tools in the broader trade and tech rivalry. For now, though, smoother supply chains should help chip, auto, and clean energy firms plan with more confidence.

Using TipRanks’ Comparison Tool, we lined up all the tickers from this piece across the mineral, chip, EV, and tech space.