Share of rare earth stocks are trading lower Monday amid potential U.S.-China negotiations that could delay export controls.

• MP is encountering selling pressure. See what is happening here.

What To Know: According to the Financial Times, U.S. officials said China is expected to postpone introducing export controls on rare earth minerals after talks in Malaysia raised hopes that President Donald Trump and Chinese President Xi Jinping will extend a trade agreement at their summit later this week.

U.S. Treasury Secretary Scott Bessent reportedly said he expects Beijing to delay the controls -- covering minerals used in fighter jets, smartphones and electric vehicles -- for a year while it re-examines the measures. The controls were initially set to take effect in the coming weeks.

The report indicates that Chinese trade negotiator Li Chenggang said the two countries had reached a "preliminary consensus" on export controls, fentanyl and extending a trade truce that is due to expire on Nov. 10. The truce, last extended in August, paused tariffs of up to 145% that Trump imposed on Chinese imports, while China maintained 125% levies on U.S. goods.

Bessent reportedly said Trump's threat to raise U.S. tariffs by an additional 100% was now "effectively off the table." Both sides also discussed a framework for new trade and mineral agreements to be finalized during the Asia-Pacific Economic Cooperation forum in South Korea later this week.

Shares of rare earth producers are moving lower as reports of a potential delay ease supply concerns that had recently boosted the sector. Expectations that China will hold off on implementing export restrictions have reduced the likelihood of near-term shortages, pressuring prices for rare earth materials and related stocks.

Shares of MP Materials Corp. (NYSE:MP), USA Rare Earth, Inc. (NASDAQ:USAR) and Energy Fuels Inc. (AMEX:UUUU) were leading the sector lower at last check. MP Materials was down 8.83% at $64.55, USA Rare Earth was down 9.42% at $21.32 and Energy Fuels was down 12.59% at $18.67, according to data from Benzinga Pro.

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