Sprott Asset Management and HANetf have launched an exchange-traded fund (ETF), giving investors targeted exposure to rare earth mineral companies operating outside China.
The Sprott Rare Earths Ex-China UCITS ETF (REXC) focuses on companies involved in the mining, separation, refining or production of rare earths.
Sprott and ETFBook described it as the only UCITS ETF offering pure-play exposure to the sector.
China accounted for 91% of global refined magnet rare earths output in 2024, according to the International Energy Agency. That concentration, combined with Beijing's export controls, has pushed governments and manufacturers to seek alternative supply for materials used in electric vehicles, wind turbines, defence systems and data centres, as John Ciampaglia, chief executive of Sprott Asset Management, explained.
"Rare earths sit at the intersection of national security, energy security and technological leadership," he said. "As developed-market governments move to secure rare earths supply chains outside China, we believe companies across the ex-China rare earths value chain are strategically positioned."
Policy support for producers outside China is also building. In July 2025, MP Materials agreed a 10-year deal with the US government setting a price floor of $110 per kilogram for its neodymium-praseodymium output, a key input for permanent magnets. Sprott said such agreements could improve revenue visibility for producers, though companies remain exposed to financing, operational and market risks.
REXC is Sprott's sixth product on the HANetf platform, joining uranium, copper and silver funds that have together gathered $646.9m in assets, according to HANetf and Bloomberg data.
Hector McNeil, co-founder and co-chief executive of HANetf, said the launch "complements Sprott's existing uranium, copper and silver products on our platform, broadening the opportunities available to investors looking at the materials underpinning these long-term themes."
Rare earths miners tend to be smaller and less liquid than companies in broader resources indices and their share prices are closely tied to volatile commodity markets. The fund's narrow sector focus also concentrates currency and market risk within a limited pool of names.
REXC tracks the Nasdaq Sprott Rare Earths Ex-China Capped index, which rebalances quarterly and is reconstituted twice a year. The fund has an ongoing charges figure of 0.65%.