CRML Stock Loses 30% Value as Critical Metals Ride on Geopolitics Cools
One of the best-performing companies in October was Critical Metals Corp., which surged on optimism for the rare earth supply chain before..
Quick overview
- Critical Metals Corp experienced a dramatic surge in October, with shares rising from $6 to $32 due to optimism surrounding rare earth supply chains.
- The rally was fueled by geopolitical tensions and China's new export restrictions on rare earths, which heightened fears of supply shortages.
- Critical Metals secured a significant long-term revenue agreement with REalloys Inc., enhancing its credibility in the rare earth sector.
- Despite the initial gains, the stock faced a sharp pullback of over 25%, reflecting profit-taking and ongoing market volatility.
One of the best-performing companies in October was Critical Metals Corp., which surged on optimism for the rare earth supply chain before wiping out gains due to more market turbulence.
A Stunning Rally Fueled by Geopolitical Shifts
Shares of Critical Metals Corp (NASDAQ: CRML) skyrocketed in October, jumping from around $6 to $32 within weeks. The rally was driven by JPMorgan’s $1.5 trillion investment initiative, which highlighted potential benefits for industries tied to critical minerals and strategic resources.
CRML Chart Daily – Undoing Tuesday’s Gains
Investor enthusiasm quickly spread across the U.S. rare earth mining sector, as geopolitical tensions between the U.S. and China intensified. The surge underscored a growing belief that American producers could play a pivotal role in securing key mineral supplies amid global trade disruptions.
Rising Tensions and Policy Moves Add Fuel
The rally gained further traction after China announced new export restrictions on rare earths, citing national security concerns. The decision heightened fears of potential supply shortages and reinforced the urgency for the U.S. to strengthen its domestic critical minerals industry.
In response, President Trump threatened 100% tariffs on Chinese imports starting November 1, alongside new export controls on critical software technologies. The policy standoff emphasized China’s overwhelming control over the market — it accounts for 70% of global rare earth mining output and 90% of processing capacity — highlighting U.S. dependence on foreign supply chains.
Industry Momentum and Strategic Partnerships
Amid this backdrop, MP Materials, a company previously championed by billionaire Chamath Palihapitiya for its national security importance, saw renewed investor interest. The spotlight on the rare earth sector grew brighter when REalloys Inc. signed a 10-year off-take agreement with Critical Metals to purchase 15% of concentrate output from its Tanbreez Project in Southern Greenland.
The Tanbreez Project is one of the world’s largest heavy rare earth deposits, and the deal gives Critical Metals significant long-term revenue visibility. The agreement also enhances the company’s credibility in a sector where reliable supply contracts are key to valuation and funding stability.
Other domestic players, including USA Rare Earth Inc. and MP Materials Corp, also rallied, extending the broader industry surge as investors sought exposure to potential U.S. supply chain leaders.
Sharp Pullback Amid Profit-Taking
After weeks of record gains, Critical Metals’ stock tumbled on Wednesday, losing over 25% intraday and briefly touching $20 before stabilizing. The selloff likely reflected profit-taking after the parabolic rise, as traders locked in gains amid uncertainty about trade developments and valuation concerns.
Technical indicators now point to possible short-term support near $20, with a deeper downside target around $16.50, which served as a key resistance level earlier this month.
Conclusion: Critical Metals’ spectacular rise underscores how geopolitical headlines and strategic partnerships can rapidly reshape investor sentiment in the critical minerals sector. However, the steep correction highlights the risks of speculative momentum and overextension.
If U.S.–China trade tensions persist and policy support continues, domestic rare earth miners like Critical Metals could remain in focus — but investors should expect volatility to match the sector’s explosive potential.
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