GraniteShares files ex-China critical minerals fund with SEC

GraniteShares prepared Oct. 17 to direct institutional capital toward Western processing assets by advancing registration for an exchange-traded fund that excludes Chinese rare earth and critical mineral producers.

The GraniteShares ETF Trust filed a Form N-1A registration statement with the U.S. Securities and Exchange Commission on Oct. 13. The vehicle is named the GraniteShares Ex-China Critical Minerals ETF.

Under normal market conditions, the fund mandates that at least 80% of its net assets will be invested in equity securities of non-Chinese companies. The portfolio targets mining, extraction, refining and recycling operators.

The prospectus covers non-Chinese producers of rare earth elements alongside strategic metals including gallium, germanium and antimony. These inputs supply defense guidance systems, wind turbines, aerospace components and electric vehicle traction motors.

Western institutional investors have traditionally accessed critical minerals through broad thematic commodity funds. Those legacy indexes allocate substantial capital to Chinese state-controlled mining corporations that dominate upstream extraction quotas and chemical separation.

China Northern Rare Earth (Group) High-Tech Co. and China Rare Earth Group control Beijing's production quotas. The two state-run firms shared 270,000 metric tons of mining quotas and 254,000 tons of smelting quotas in 2024.

China accounts for roughly 70% of global rare earth extraction and over 85% of refining output. That industrial dominance leaves broad commodity funds exposed to Beijing's internal pricing directives, production ceilings and export licensing controls.

The GraniteShares prospectus establishes an explicit exclusion policy barring Chinese issuers and mainland processing operations. The mandate isolates investor exposure strictly to Western extraction assets, allied refining plants and domestic recycling infrastructure.

The filing follows the debut of the Sprott Rare Earths Ex-China ETF, which listed on the Nasdaq exchange on April 15. That vehicle established the initial dedicated ex-China vehicle for North American institutional managers.

MP Materials Corp. operates the Mountain Pass mine in California and generated $126.1 million in consolidated revenue in the second quarter of 2026. The producer delivered 840 metric tons of neodymium-praseodymium oxide that quarter.

MP Materials ceased concentrate shipments to Chinese processors in July 2025. The company allowed its long-term offtake contract with Chinese processor Shenghe Resources to expire in January 2026, shifting entirely to Western commercial customers.

The company is commissioning an integrated magnet production facility in Texas designed for 3,000 metric tons of annual neodymium-iron-boron magnet output. MP Materials is also developing a second facility with a 7,000-ton target capacity.

Lynas Rare Earths Ltd. mines at Mount Weld in Western Australia and produced roughly 6,600 metric tons of neodymium-praseodymium oxide in its most recent fiscal year. The company recorded annual revenue of A$542 million ($360 million).

Lynas processes mineral concentrates through cracking facilities in Kalgoorlie, Australia, and its chemical separation complex in Gebeng, Malaysia. The operation represents the largest active commercial rare earth refining operation outside mainland China.

The GraniteShares fund extends beyond lanthanides to capture non-Chinese suppliers of specialized electronic metals. Gallium and germanium miners outside China have expanded output since Beijing imposed export licensing restrictions on both materials in August 2023.

China imposed additional export restrictions on antimony products in September 2024. Antimony strengthens lead-acid batteries, hardens military ordnance and stabilizes flame retardants, prompting allied defense procurement offices to seek secured Western supply lines.

Dedicated ex-China investment funds concentrate equity liquidity directly into independent operators. By aggregating capital into non-Chinese firms, asset managers reduce the funding cost required for capital-intensive hydrometallurgical refineries and precision reduction furnaces.

GraniteShares Advisors LLC selected an active management strategy rather than passive benchmark tracking. Active portfolio managers can adjust company weightings as Western facilities achieve commercial throughput or as procurement mandates shift.

The registration statement was submitted under Securities Act Rule 485(a)(2), designating fund effectiveness 75 days after submission. That administrative timeline establishes an expected regulatory effective date in late December 2026.

The preliminary prospectus does not disclose the fund's ticker symbol, expense ratio or annual management fee structure. GraniteShares has not published a listing venue, authorized participant agreements or an initial portfolio schedule.

The issuer must submit a pre-effective amendment to the SEC finalizing fees and fund operational terms before retail and institutional trading commences in New York.