稀土：绕过中国的限制和美国的回应

Please refer to important disclosures on pages 25-28. Analyst certification is on page 25.William Blair or an affiliate does and seeks to do business with companies covered in its research reports. As aresult, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of thisreport. This report is not intended to provide personal investment advice. The opinions and recommendations here- Thesis.................................................................................................................................3Summary............................................................................................................................3Introduction.......................................................................................................................4Rare Earths........................................................................................................................5Key Minerals......................................................................................................................8Current Global Production..............................................................................................16Government Funding Domestic Rare Earth Supply Chain..............................................21Conclusion.......................................................................................................................23 As global demand for rare earth elements rises, U.S. companies have started the process to re-duce reliance on China by rapidly expanding domestic production, processing, and recycling. Fornational and economic security, the U.S. government including the Department of Defense (DOD)and the Department of Energy (DOE) has stepped in, strategically funding rare earth supply chain While many rare earth stocks have hit the cover off the ball in recent weeks, we believe there isstill material future upside. Continued geopolitical developments and recent major financial in-stitution investment pledges have increased the valuations significantly for all five of our coveredcompanies—American Resources Corporation, Royalty Management Holding Corporation, UnitedStates Antimony Corporation, USA Rare Earth, and NioCorp Developments—along with other rare Problem China currently controls 70% of the mining, 90% of separation, and 93% of worldwide rare earthoxide and magnate production. This causes an unhealthy global reliance, especially for makingmagnets, which are critical for defense, electric vehicles (EVs), and robotics. Making matters worse,China recently added five additional rare earth minerals to its trade restrictions list, equivalent toa total 12 banned medium and heavy rare earths. China’s new export restrictions on these criti-cal minerals require companies to obtain government-issued export licenses not only for the rawmaterials themselves but also for foreign-made products containing those materials. This policyeffectively tightens control over the entire rare earth supply chain, impacting mining, smelting, re- Response The Trump administration has focused on reducing U.S. dependency on Chinese rare earths, retali-ating against export restrictions, and expanding the domestic supply chain. These efforts, build oninitiatives started under the Biden administration, with the goal to diversify supply sources andstrengthen access to critical minerals. Since 2020, The DOD has invested $439 million dollars intoU.S. rare earth projects, including material direct stakes in three public rare earth companies: MPMaterials, Lithium Americas, and Trilogy Metals. J.P. Morgan recently stated that it will invest up to$10 billion into companies critical to U.S. national security as part of a broader $1.5 trillion 10-year Next Move Up We recognize the recent stock appreciation of rare earth-related companies. However, we believethat significant new financial backing and direct government stakes in rare earth companies couldprovide a second meaningful leg up for several rare earth stocks. We anticipate government fund-ing in the five companies we have initiated on, excluding Royalty Management Holding Corporationas it is ineligible as a holding company. On October 6, 2025, the current administration announcedinvestments in MP Materials, Lithium Americas, and Trilogy Metals, leading to massive stock price continued rare earth upside: •American Resources– a unique rare earth separator and refining rare earth company•NioCorp Developments– a rare earth company in the development stages for the Elk Creekmining project Rare earth minerals are essential to modern technologies, from clean energy to national defense,and the U.S. has identified 54 critical minerals as vital to economic and security interests. Today,China controls 70% of mining, 90% of separation, and 93% of worldwide rare earth oxide andmagnate production, leading to an unhealthy global reliance—especially for making magnets,which are cr