Sprott Rare Earths Ex-China ETF Targets Non-China Supply

Sprott Rare Earths Ex‑China ETF, listed under the ticker REXC, holds public equities of companies outside China that mine, process and manufacture rare-earth elements. The fund focuses on firms involved at stages from extraction through component production.

The ETF concentrates on companies operating in the United States, Canada, Australia and parts of Europe and Asia outside China. Typical holdings include miners developing deposits, firms expanding processing and separation capacity, and manufacturers that turn refined materials into magnets and other components used in electric motors, wind turbines and electronics.

China remains the largest producer and processor of many rare-earth materials. Governments and companies are supporting efforts to build supply chains outside China, including domestic mining, processing and recycling initiatives. REXC provides a public equity vehicle for investors to obtain exposure to those non‑Chinese activities.

Demand for neodymium and praseodymium, elements used in high‑strength permanent magnets for motors and generators, is rising as electrification and advanced technology deployment increase. The ETF’s holdings reflect companies that produce raw ore, refine elements and manufacture finished components along the supply chain.

REXC combines development‑stage miners with more established producers and processors. Mining and processing projects typically require large capital investments, long lead times and regulatory approvals. Companies building processing facilities face environmental permitting and technical challenges that can affect timelines and costs.

Potential risks for the fund include commodity price volatility, project execution risk, geopolitical and trade developments, and concentration in a limited number of firms and jurisdictions. These factors can affect revenue and share prices of companies in the portfolio.

Rare‑earth elements comprise 17 metals used across modern technologies. The supply chain involves mining ore, separating and refining individual elements, and producing components such as permanent magnets. REXC offers investors targeted public equity exposure to companies working to expand rare‑earth supply and processing capacity outside China.