Junior rare earth stocks could be sitting on significant upside heading into 2026. Market dynamics are setting up some interesting catalysts worth paying attention to.

The supply side tells an important story: China maintains roughly 60-70% of global rare earth mining capacity, while controlling an even more dominant 85-90%+ share of processing and magnet production. That concentration creates real geopolitical leverage.

Meanwhile, demand is accelerating across multiple fronts. Clean energy infrastructure buildouts, EV production scaling, and defense sector restocking are all pulling orders. When you layer in potential supply disruptions and the shift away from over-reliance on single-source markets, junior explorers and producers positioned in jurisdictions outside China could experience explosive appreciation.

The confluence of tightening fundamentals and geopolitical tailwinds makes 2026 a year to watch for this space.