Nova Minerals, Cleveland Cliffs, Critical Metals and Other Rare-Earth Stocks Sink

Nova Minerals, Critical Metals and other rare-earth stocks fell by double-digit percentages Tuesday as the sector retrenched after days or even weeks and months of strong gains amid ongoing attempts to develop non-Chinese sources for the key materials.

$Nova Minerals(Delisted) (NVA.US)$ led the way lower, shedding 22.7% to $36.74 as of shortly before 10:30 a.m. ET.

The Australian mining firm has pulled back some 55% since peaking at $81.40 last Tuesday on speculation that the U.S. government might take a stake in the firm. NVA had risen some 630% between its Sept. 4 intraday low and its Oct. 14 session high.

The stock peaked after announcing that the Australian government had requested information about its mining operations ahead of a Washington meeting this week between U.S. President Donald Trump and Australian Prime Minister Anthony Albanese.

The two leaders signed a deal Monday to work together to create non-Chinese sources for rare earths and other so-called "critical metals."

The substances are key ingredients to electric-car batteries and other high-tech products, but China – which currently controls much of the global supply – announced new controls of their exports earlier this month. That sent the stocks of many non-Chinese rare-earth producers soaring.

The sector had already been rising for weeks or even months as the Trump administration vowed to develop North American sources for the substances.

However, many rare-earth stocks have been pulling back in recent days after enjoying 100% gains or more.

Other rare-earth stocks to fall sharply Tuesday as of shortly before 10:30 a.m. ET included:

-- $Cleveland-Cliffs (CLF.US)$, down 15.6%. The steel firm shot up 21.5% on Monday after announcing plans to enter the rare-earth business.

-- $Critical Metals (CRML.US)$, off 15.6%.

-- $United States Antimony (UAMY.US)$, which shed 12.7%.

-- $USA Rare Earth (USAR.US)$, 12.6% lower.

-- $MP Materials (MP.US)$, which gave back 6.6%.

-- $Energy Fuels (UUUU.US)$, which fell 6%.

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