At the Value Invest New York 2026 conference, Jeff Everett, co-founder of Tectonic Investors, presented a pitch in the rare earth minerals sector, an industry he believes has three components/characteristics – national security, technological transformation, and deep value. Everett’s investment philosophy was shaped by two decades working alongside Sir John Templeton, one of the first global investors. At the event, Everett argued that one Western company in particular has positioned itself to break China’s stranglehold on this critical supply chain.
The Problem: China’s Stranglehold on Rare Earth Minerals
Everett opened by asking the audience to consider what would happen if a single material category underpinning their portfolios, across transportation, defense, logistics, semiconductors, and AI, suddenly became unavailable. That material, he argued, is not copper, lithium, or oil. It is rare earth magnets.
China controls approximately 90% of global rare earth mineral processing and 95% of rare earth magnet production. Everett emphasized that this is not accidental. “China has spent decades creating an industrial strategy around an element they saw as critical to the future of the world,” he said.
The implications are particularly acute for defense. Modern warfare relies on autonomous drones, precision-guided munitions, and AI-powered systems, all dependent on rare earth magnets. “It’s almost as if American defense contractors said, ‘We build the best products, but we need to call Beijing to power them up,'” Everett noted.
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