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Rare earth elements power everything from defense systems to EV motors to wind turbines.
China controls approximately 90% of global processing capacity, creating supply chain vulnerabilities as geopolitical tensions escalate. The United States and allied nations are racing to establish alternative sources, driving explosive interest in Western rare earth developers.
Two leading critical metals companies are advancing large-scale projects: Critical Metals (CRML) is developing the Tanbreez rare earth project in Greenland with non-binding offtake agreements covering all planned production and a proposed Saudi Arabia processing joint venture. USA Rare Earth (USAR) is advancing the Round Top project in Texas with partnerships including Fluor and WSP for engineering and construction, targeting 2028 production.
Critical minerals are in high gear as CRML and USAR both rocketed 150%+ this month. CRML’s rally follows blockbuster drill results and a Saudi processing partnership, while USAR has been fueled by a landmark $1.6B U.S. government investment and a strategic pivot into European markets. Investors should note: both remain pre-revenue developers, making high volatility a "feature" of their multi-year growth stories.
Heightened volatility is expected as these two companies release their upcoming earnings reports. To seek to capitalize on these moves, Tradr ETFs offers 2X leveraged ETFs that allow active traders to amplify their daily exposure to each stock:
Tradr ETFs | ETF Symbol | Description |
Cboe: CRMX | 200% leverage on Critical Metals stock | |
Cboe: USAX | 200% leverage on USA Rare Earth stock |
Critical Metals (CRML)
Critical Metals is a mining development company focused on critical metals and minerals. Based in New York, the company's flagship Tanbreez rare earth project in Greenland contains gallium, hafnium, niobium, tantalum, yttrium, zirconium, and heavy rare earths including dysprosium, terbium, and europium.
The company surged more than 150% in January 2026, driven by multiple catalysts. Initial assay results from the 2025 drilling program confirmed consistent rare earth grades at both the Fjord Deposit and Upper Fjord areas. The company announced a non-binding 50/50 joint venture framework with Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers Company to develop, finance, construct, and operate a rare earth processing facility in Saudi Arabia.
CRML secured non-binding offtake term sheets covering all planned Tanbreez production for 25% concentrate supply to the Saudi facility, with finished materials destined for U.S. defense applications. Greenland granted pilot plant approval, advancing permitting progress.
Key risks include converting non-binding agreements into firm contracts, securing project financing, and navigating multi-jurisdictional regulatory requirements across Greenland, Saudi Arabia, and U.S. markets.
The Tradr 2X Long CRML Daily ETF (CRMX) seeks to provide double the daily exposure to CRML's price action, turning the stock's volatility into a precision tool for high-conviction trades on ex-China rare earth supply chain development. For more information about CRMX, CLICK HERE.
USA Rare Earth (USAR)
USA Rare Earth is building a domestic rare earth magnet supply chain including mining and processing of heavy rare earths and critical minerals. Based in Stillwater, Oklahoma, the company's flagship Round Top project in Sierra Blanca, Texas, contains heavy rare earths, yttrium, hafnium, zirconium, and gallium.
On January 26, 2026, USAR announced a landmark $1.6 billion investment package from the U.S. government, marking one of the most significant federal commitments to domestic critical minerals infrastructure. The deal includes a $1.3 billion senior secured loan from the Commerce Department's CHIPS Program alongside $277 million in proposed federal funding. As part of the transaction, the government will receive 16.1 million shares and approximately 17.6 million warrants (derivatives that give holders the right to buy securities at a specific price and time) priced at $17.17 per share, representing roughly a 10% stake in the company.
The government investment follows USAR's announcement of Fluor Corporation and WSP Global as engineering, procurement, and construction management partners to advance the Definitive Feasibility Study for Round Top. The Accelerated Mine Plan targets bringing Round Top online in 2028, two years faster than prior forecasts. USAR expects to operate its demonstration plant in Wheat Ridge, Colorado, for at least 2,000 continuous hours, with operations concluding in October 2026.
In addition to the government package, USAR raised $1.5 billion in a private investment in public equity anchored by Inflection Point, bringing total new capital to over $3 billion. Commerce Secretary Howard Lutnick stated the investment "ensures our supply chains are resilient and no longer reliant on foreign nations."
The funding represents the latest Trump administration move to build domestic rare earth capacity following China's export restrictions in April 2025. Previous government investments included Vulcan Elements ($670 million), Lithium Americas, Trilogy Metals, and MP Materials.
The company's subsidiary Less Common Metals Europe is developing a 3,750 metric ton per annum metal and alloy production facility in Lacq, France, partially subsidized by the French government. The facility will strengthen European rare earth supply chains and provide Arnold Magnetic Technologies with reliable supply for advanced permanent magnets.
USAR's magnet facility in Stillwater, Oklahoma, with 5,000 tonnes annual capacity, is set to enter commercial operations in 2026, positioning the company across the entire value chain from mining through magnet production. The company expects confirmatory and geotechnical drilling at Round Top in the first half of 2026.
The company is confirmed to report earnings on February 11, 2026, providing traders with visibility into demonstration plant progress, Round Top development timelines, and partnership execution.
The Tradr 2X Long USAR Daily ETF (USAX) seeks to target 200% of USAR's daily performance, making it especially valuable for traders positioning on the domestic rare earth supply chain opportunity from mining through magnet production. For more information about USAX, CLICK HERE.
Trade Leading Critical Metals Stocks With Leverage
Geopolitical tensions are driving urgent demand for Western rare earth supply chains. Critical Metals secured Greenland resources and Saudi processing partnerships. USA Rare Earth landed a landmark $1.6 billion government investment alongside major engineering partners, targeting 2028 production.
These popular critical metals stocks represent different approaches to the same strategic imperative: reducing dependence on Chinese rare earth processing. CRML surged more than 200% in January 2026. USAR has rallied more than 100% over the past six months. Both remain pre-revenue developers executing multi-year timelines with significant execution risk.
For active traders, Tradr's 2X leveraged ETFs provide tactical precision:
These funds reset daily, giving fresh 2X exposure each trading day. When these stocks move 5% on partnership announcements or permitting progress, the leveraged ETFs seek to target 10% moves, before fees.
If you plan on trading these leveraged ETFs, remember:
- Daily reset: Performance targets apply to single trading days only
- Volatility cuts both ways: Leverage amplifies both gains and losses
- Active management required: Designed for traders monitoring positions, not passive investors
- Concentration risk: Single-stock ETFs provide no diversification
The Western rare earth supply chain buildout represents a multi-year transformation driven by geopolitical imperatives. These two leading stocks offer traders 2X leverage for high-conviction plays on ex-China critical metals development.
Leveraged ETFs Involve Significant Risks
Tradr ETFs are for sophisticated investors and professional traders with high conviction views and are very different from most other exchange-traded funds. Know the risks before you invest. The significant risks of leveraged and/or inverse ETFs include the risks of leverage, derivatives, and/or other complex investment strategies that they employ. These investments are designed for short-term trading for investors seeking daily, monthly or quarterly leveraged investment results.
Investors in the fund should: (a) understand the risks associated with the use of leverage; (b) understand the consequences of seeking daily, calendar month and calendar quarter inverse and leveraged investment results; (c) for short ETFs, understand the risk of shorting; (d) intend to actively monitor and manage their investment. Fund performance will likely be significantly different than the benchmark over periods longer than the specified reset period and the performance may trend in the opposite direction than its benchmark over periods other than that period.
The Funds seek leveraged investment results over a specific period and are intended to be used as short-term trading vehicles. The Funds pursue leveraged investment objectives, which means they are riskier than alternatives that do not use leverage because the Funds magnify the performance of their underlying security. The volatility of the underlying security may affect a Fund’s return as much as, or more than, the return of the underlying security.
The Fund will not attempt to position its portfolio to ensure it does not gain or lose more than a maximum percentage of its net asset value on a given trading day. As a consequence, investors in a Fund that seeks two times daily performance would lose all of their money if the Fund’s underlying security moves more than 50% in a direction adverse to the Fund on a given trading day.
ETFs involve risk including possible loss of principal. There is no assurance that the Fund will achieve its investment objective. Principal risks and other important risks may be found in the prospectus.
Investors should carefully consider the investment objectives, risks, charges and expenses of the fund before investing. To obtain a prospectus containing this and other important information, please visit www.tradretfs.com to view or download a prospectus online. Read the fund’s prospectus carefully before you invest.
Distributed by ALPS Distributors, Inc, which is not affiliated with AXS Investments or its Tradr ETFs. AXI000852
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