Steve Schoffstall

Sprott's Rare Earth Ex-China ETF REXC | Steve Schoffstall and Jimmy Connor

• Top takeaway The guest argues that despite the name, rare earths are not geologically scarce — they are rarely found in concentrations that make mining economically viable, which he says is the real bottleneck.
• He emphasizes that China now controls roughly 69% of rare earth mining and over 90% of refining and magnet production, and is using export controls to restrict access.
• He cites dysprosium (used in magnets) as a concrete example, saying its price has risen from $100/kg to $900/kg as a result of those restrictions, supporting the sector investment case.
• The guest frames the policy backdrop as a major tailwind: Western governments are reshore-ing production and offering incentives, which he expects to create opportunities outside China.
• He positions the new ETF as differentiated versus competing products, arguing many funds marketed as rare earth ETFs are actually diversified or concentrated in other metals, sometimes with single-digit rare earth exposure.

Sprott's Steve Schoffstall outlines REXC, a rare earths ex-China ETF holding 34 companies screened from ~1,000 miners for >=50% rare earth revenue. China now controls about 69% of rare earth mining and over 90% of refining and magnet production, prompting Western reshoring investment. Dysprosium prices have spiked from $100 per kilo to $900 per kilo as China tightens rare earth export controls. REXC's holdings weigh about 48% Australia, 40% United States and 8% Canada, with roughly 38% large cap and the rest mid and small cap. The fund claims about 96% pure-play rare earth exposure, while some competing 'rare earth' ETFs hold single-digit exposure.

Virtual Rare Earth Conference - Master Class on Investing in Rare Earth Sector

• Top takeaway Steve argues that China now controls about 69% of rare earth mining and over 90% of refining and magnet production, and that Western countries are putting unprecedented funding and policy in place to reshore production away from Chinese control.
• He points to dysprosium's move from $100/kg to $900/kg as direct evidence that Chinese export controls are tightening supply and lifting prices.
• He pitches Sprott's new REXC ETF as the only fund solely focused on rare earths, with ~96% pure-play exposure versus single-digit exposure in many competing products marketed under the rare earth label.
• He stresses that the investment case is multi-year: rare earth prices have 'gone through the roof', Western reshoring programs are real, and the ETF's ~48% Australia / ~40% US / ~8% Canada weighting captures the geography of that build-out.

China controls 60% of mining, 91% of refining, and 94% of magnet output, pushing Western governments to fund non-Chinese rare earth supply. Dysprosium is up 300% and terbium is up 400% on Chinese export restrictions, with Western buyers still struggling to secure heavy rare earths. Heavy rare earths are hardest to extract economically; China refines roughly 98% of heavy metal, the gap G7 nations are racing to close. Rainbow Rare Earths targets 2029 production by recovering rare earths from phosphate mining waste stockpiles, sidestepping traditional mining risk. Humanoid robots could use 3 to 5 times more permanent magnets per unit than an EV, opening a major new rare earth demand vector.