Vol 29 - The "Rare" Dominance!
- Ann Yu
- Jun 15
- 6 min read
June 15, 2025
A week full of insights and energy!
This week, I had the chance to attend the Bloomberg Invest summit and visit UST Unicorn Day at University of Science and Technology.
🔹 Wall Street's investment consensus? Still holding strong, no surprises there.
🔹 Campus vibes? Electric! Young entrepreneurs are charging ahead with ambition, while professors - well, they remain as talkative as ever.
Meanwhile, Jadewell Family Office is also testing something new!
Many of you have said my newsletter is way too long... I hear you. 🥲🥹
So, here’s the plan:
📌 Then, on weekends, we’ll compile detailed insights into the full weekly newsletter.
Have ideas or suggestions? Let me know! Always excited to hear your thoughts.
What's in the newsletter this week?
1️⃣ China’s Rare Earth Dominance! China has leveraged its absolute control over the rare earth supply chain to gain a strategic edge at the negotiation table - leaving Trump in check. But what makes rare earths so powerful? And how has China pulled far ahead, leaving the rest of the world trailing behind?
2️⃣ S&P 500's Missing Titans? You’d think investing in the S&P 500 means owning shares in the world’s largest companies, right? Not so fast! Two of the world’s top 10 companies aren’t even included in the index! Can you guess which ones? 🤔
Category | Contents for this week |
|---|---|
1) Earths of the Week | |
2) Fun Fact |
Key things to watch for the upcoming week:
China - Eco Data | Jun 16 (Mon) - Industrial Production, Retail Sales, Fixed Asset Investment |
US - Eco Data | Jun 17 (Tue) - 20-year US Treasury Auction, Retail Sales Jun 19 (Thu) - FOMC Rates Decision |
Other Major Events | Jun 17 (Tue) - Bank of Japan Rates Meeting Jun 19 (Thu) - Swiss National Bank Rates Meeting, Bank of England Rates Meeting |
Earths of the Week – China's Rare Earth Dominance!
In the latest round of U.S.–China trade negotiations, China leveraged its rare earth dominance to gain the upper hand!
But what exactly are rare earths? How rare are they? And what makes them so valuable? Let’s break it down:
1) What Are Rare Earths?
Rare earths refer to 17 special chemical elements that play a crucial role in modern technology.
Surprisingly, they’re not rare at all! Their abundance on Earth is greater than gold, silver, and copper.
The challenge? They don’t exist as pure minerals—instead, they’re scattered across different ores, making extraction a highly complex process.
The first discovery of rare earths dates back to 1787, when scientists in Sweden stumbled upon a mysterious black rock. It took them centuries to fully understand its hidden elements!
2) The Power of Rare Earths: Why They're Indispensable?
Rare earth elements possess unique magnetic 🧲, optical 💡, and conductive ⚡ properties, making them the backbone of cutting-edge technology.
Example 1: Revolutionizing Electric Vehicles
Tesla’s early models, like the Roadster, used induction motors, which didn’t require rare earths. But with Model 3, Tesla switched to permanent magnet motors, leveraging rare-earth magnets for superior performance:
🚀 Higher efficiency: Converts energy more effectively, allowing EVs to travel longer distances
🔋 Reduced battery strain: Boosts energy efficiency, extending battery life
❄️ Lower heat generation: Runs at cooler temperatures, reducing the need for cooling systems
🏎️ Lighter weight: Permanent magnet motors are smaller & lighter, improving vehicle performance
Example 2: Critical in Military Technology
Rare earths are also essential in advanced defense systems, including:
🚀 Missiles & smart weapons: Enhance precision by improving guidance systems & electric motors
⚡ Nuclear submarines & aircraft carriers: Ensure the stability of nuclear propulsion systems
🌙 Night vision equipment: Rare earths are core materials in thermal imaging, boosting nighttime combat capabilities
Beyond this, rare earths are irreplaceable in consumer electronics, industrial manufacturing, and semiconductor production! Rare earths are the invisible force driving modern technology forward.
3) How China Dominated Rare Earth?
Step 1: Controlling the Raw Materials
🌍 China holds around 60% of the world’s rare earth reserves, mainly in Inner Mongolia’s Bayan Obo Mine and Jiangxi’s ion-absorbed rare earth deposits. Not only does China have a diverse range of rare earth elements, but its low-cost mining gives it an undeniable edge in supply dominance.
Step 2: Monopolizing the Refining Process
⚙️ Extracting rare earths requires complex chemical separation techniques, creating toxic waste and posing huge environmental challenges. China controls about 85% of the world’s rare earth refining capacity - even if other countries mine rare earths, they still rely on China for processing.
Step 3: Owning the Manufacturing Chain
🧲 The most valuable rare earth application? High-performance magnets - used in EV motors, wind turbines, and military equipment. China produces nearly 90% of the world's rare earth magnets, securing its dominance in defense, renewable energy, and tech industries.
Step 4: Government
📜 Unlike other nations, China’s rare earth industry is strategically guided by the government, making it highly centralized and politically weaponized. From export restrictions to trade negotiations, China has turned rare earths into a bargaining chip on the global stage.
📌 Bottom Line:
Through resource control, technological monopoly, and policy-driven strategy, China has built an unshakable rare earth empire.
Find Your Rare Earth
At Bloomberg Invest, a European speaker said: "I hope Europe can find its 'rare earth' soon."
Without essential resources, Europe risks being outmaneuvered in trade, always reacting instead of leading. But this applies to everyone - startups, companies, individuals.
🔍 Your rare earth is your competitive edge.
🚀 The journey is tough, but without it, how much influence do you have?
For your reference only. Not investment/product recommendations.
Fun Fact – S&P 500's Missing Titans?
Think the World's Biggest Companies Are All American? Think Again!
A client recently asked me: "If I buy the S&P 500, am I automatically invested in the world’s largest companies?"
Well… not exactly! 😏
While many assume that the top global giants are all included in the S&P 500, two of the largest market cap companies are actually missing from the index! Can you guess which ones?
💡 Hint:
To be part of the S&P 500, a company must be American - so these two massive corporations didn’t make the cut simply because they aren’t U.S. companies!
🔍 The answer?
🏆 #7 in global market cap – Saudi Aramco (Saudi Arabia’s energy powerhouse)
🏆 #9 in global market cap – TSMC (Taiwan’s semiconductor giant and a pillar of the tech industry 💪)
But what about the NASDAQ index, which focuses on tech?
Surprisingly, TSMC isn’t in NASDAQ either! 🚫
NASDAQ doesn’t require companies to be American, but they must be listed on the NASDAQ exchange. Since TSMC’s ADRs trade on the New York Stock Exchange, it doesn’t qualify!
Before you go - don’t forget!
🎧 Tune in to our podcast on Spotify where we dive into the latest financial insights.
📌 Follow us on Facebook and IG to join the conversation and explore even more exciting market trends!
And here’s a look at the top 10 companies by global market cap (as of June 13, 2025) right now! 👇
For your reference only. Not investment/product recommendations.
About Jadewell Family Office
Jadewell is committed to offering proactive, customized services akin to a “single-family office,” yet within the ease of a “multi-family office” environment.
Ann Yu
Co-Founder and CEO
Jadewell Family Office
FOR INSTITUTIONAL & PROFESSIONAL CLIENTS ONLY – NOT INTENDED FOR RETAIL CUSTOMER USETHESE ARE NOT STOCK OR PRODUCT RECOMMENDATIONS
This document is intended for informational purposes only. It should not be considered as advice or a recommendation for any specific investment product, strategy, plan feature, or any other purpose in any jurisdiction. It is educational and does not represent a commitment from Jadewell Family Office to participate in any mentioned transactions. Any examples used are generic, hypothetical, and for illustration purposes only.
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