This sector has been on the rise lately. The VanEck Vectors Rare Earth/Strategic Metals ETF (REMX) dropped by 3% on Friday, but grew 128.2% on an annual basis.

Bloomberg report indicates that the miners of rare earth minerals and uranium refiners have witnessed a surge in their market after the electric vehicle developers began using products made from these materials for their technology. These EV manufactures and other green energy suppliers have decided to find more minerals in the quest to minimize environmental pollution and achieve certain investment strategies.

The rare metals are used in electric vehicle batteries, wind turbine technologies, and missile control systems. Additionally, the limited supply of these metals globally will factor into the schematics of this industry. China claims they own the highest percentage of these metals.

Initially, lithium miners enjoyed big revenues from the electric vehicle market and the battery developers who were relying on this element to make their products. However, the transition to a more sustainable and green model lead to the identification of the areas where the new technologies still contributed to environmental degradation.

After the Biden administration took office and began to voice their stance that they wished the country and its industries to move closer to zero emissions and sustainable business models the rare mineral excavators started receiving similar interest to lithium miners from the many electric vehicle companies.

MP is “a play on accelerating adoption of electric vehicles and electrification trends in wind turbines,” Morgan Stanley analyst Carlos De Alba said in a report on Tuesday. “If you like EV, you’ll love MP.”

Meanwhile, with supply tightening and ESG demand from investors ramping up, uranium stocks such as Denison Mines Corp. have surged more than 70% this year, compared to 23% gain in Global X Uranium ETF.

Some predict that uranium miners and producers could start seeing these same revenue increases. Investments in this sector have grown considerably with some governments also chipping into its development.

“Uranium sector supply/demand balance is the tightest we’ve seen since pre-Fukushima,” said GJL Research analyst Gordon Johnson, referencing to 2011 nuclear catastrophe in Japan.

“When you add to this, uranium stocks are now gaining attention from ESG investors due to their low GHG footprint and quintessential role as a clean energy alternative, we see the set-up for incremental/new Uranium investments as opportune,” Johnson added, referring to greenhouse gas emissions.

The uranium sector could gain even more as some are speculating that large funds are probably slowly increasing their position.

“If true, this could go on for a long time as they build significant positions ahead of the inevitable price rise in the commodity,” Johnson said.

Most likely the ETF investors will be utilizing the North Shore Global Uranium Mining ETF (NYSE: URNM) and Global X Uranium ETF (URA) to receive profits from this industry.

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