Ripple Effect
The U.S. Falls Behind China in Resource Development
July 23, 2025 • 1 minute, 35 second read
A new economic narrative has started building in recent weeks.
Following the announcement that the Department of Defense would take a stake in MP Materials (MP), a rare earth developer exclusively in North America, it’s clear that the U.S. sees domestic resource development as a key part of national defense.
However, the move, while shaking the small resource market, pales in comparison to the hefty investments that China has been making in the metals and mining space for over a decade:
China has made extensive global investments in resource developments.
Currently, resources make up about 2% of the S&P 500 by market cap. Even today’s big-name gold miners carry market caps of under $100 billion, and the entire resource space is valued at less than any of the Magnificent Seven names.
But these are the critical physical commodities the world needs. Copper, gold, lead, zinc, uranium, and the rare earths.
This story is just getting started, and U.S. developers may see big moves ahead as the U.S. looks to catch up from a decade of underinvestment as China has moved full steam ahead with resource development.
~ Addison
P.S. With the resource market taking off, we’ve asked Grey Swan Contributor Shad Marquitz, to join us again on Grey Swan Live! tomorrow, July 24 @ 11 a.m. ET.
Shad regaled us last time with a litany of tickers he likes in the natural resource space. We covered rare earth minerals, uranium and nuclear energy, precious metals and building materials.
Tomorrow’s call will give us a chance for another full run down with Shad. He’s very articulate on investing in natural resources. If you’re interested in this overlooked space that’s starting to heat up again, you’ll want to join us Live!
As always, your reader feedback is welcome: feedback@greyswanfraternity.
