The rare-earth miner MP Materials will enjoy growing strategic value to the U.S., as geopolitical tensions with China make the supply of critical minerals more uncertain, according to Morgan Stanley.

Beijing has approved more export licenses for the critical minerals and magnets in recent days, but supplies remain scarce and factories in the West are running out.

China said on Saturday it was willing to accelerate the examination and approval of rare earth exports to European Union firms.

Rare earth magnet supply chain issues from China impacting auto and electronics industry, including smartwatches and wireless earbuds.

China accounts for more than 60 percent of rare earth mining production and 92 percent of global refined output, according to the International Energy Agency

China's critical-mineral export controls have become a focus on Trump's criticism of Beijing, which he says has violated the truce reached last month to roll back tariffs and trade restrictions.

Beijing has agreed to fast-track approvals for rare earth export licences for some European companies after China’s strict controls on shipments of the critical minerals rocked global supply chains.

Major manufacturers, fearful they will have to shut down assembly lines, are considering moving some production of parts to China.

China has signalled for more than 15 years that it was looking to weaponise areas of the global supply chain, a strategy modelled on longstanding American export controls Beijing views as aimed at stalling its rise.