Not just gold: U.S. company plans to invest $200M in France for critical metals and minerals. How to diversify a portfolio with these precious metals

The investment aligns with efforts by the U.S. government to build supply chains outside of China and secure access to materials considered critical to national security and advanced manufacturing. The project could create more than 300 jobs and may receive support from the French government.

The announcement underscores how countries aren’t just competing for oil anymore. They’re scrambling to secure access to the metals and minerals needed to build electric vehicles, semiconductors, wind turbines, data centers, military equipment and artificial intelligence infrastructure.

For investors, that raises an intriguing question: could critical minerals become a useful complement to traditional portfolio holdings?

Why rare earths suddenly matter so much

Despite the name, rare earths aren’t especially rare. The challenge is processing them.

China dominates the global rare-earth industry, controlling roughly 70% of mining production and about 90% of processing and refining capacity. It also manufactures the vast majority of the permanent magnets made from those materials.

That dominance has become increasingly uncomfortable for Western governments. Over the past two years, Beijing has tightened export controls and imposed new restrictions on certain rare-earth products and technologies, underscoring how dependent many industries remain on Chinese supply chains.

The result has been a surge of investments across the U.S., Europe, Canada and Australia aimed at creating alternative sources of supply. USA Rare Earth’s expansion in France is just one example of a broader effort to build a Western rare-earth ecosystem that can compete with China’s stronghold.

How investors can get exposure

Most Americans aren’t going to buy and store rare earth elements the way they might purchase gold coins.

Investors typically gain exposure through mining companies, exchange-traded funds focused on critical minerals or broader natural-resource funds. These investments can benefit when demand for strategic materials rises, particularly as governments subsidize domestic production and manufacturers seek secure supply chains.