Rare earth miners jump as Trump is eyeing mineral stockpile

President Trump Announces Plan to Build Strategic Stockpile of Critical Minerals

U.S. President Donald Trump has unveiled a groundbreaking plan to establish a strategic stockpile of critical minerals, sending shares of U.S.-listed rare earth miners soaring on Monday.

Dubbed as Project Vault, the proposal aims to create a first-of-its-kind strategic stockpile of critical minerals exclusively for the U.S. private sector. The plan involves a collaboration of $1.67 billion in private capital along with a $10 billion loan from the U.S. Export-Import Bank. President Trump’s initiative is focused on reducing America’s reliance on China for crucial materials essential for electric vehicles, defense systems, and advanced technology.

Following the announcement, MP Materials, the operator of the Mountain Pass mine in California, witnessed a 6% surge in early trading on Monday. Similarly, USA Rare Earth and Critical Metals Corp. experienced a rally of 13% and 12% respectively, as investors speculated that the plan could stimulate domestic demand and attract government-backed financing for the sector.

Bloomberg News was the first to report on the proposal earlier in the day.

USA Rare Earth has already engaged in discussions with Commerce Secretary Howard Lutnick, showcasing its domestic mining and magnet assets to the federal government. These discussions may potentially lead to a proposed deal that could secure the company with approximately $1.6 billion in funding, subject to specific conditions, and may involve a U.S. government equity stake.

These recent developments reflect a more proactive approach by Washington in the sector. Last summer, the Department of Defense entered into a groundbreaking agreement with MP Materials, which included an equity stake, a price floor, and a long-term commitment to purchase a specified quantity of rare earth minerals and magnets.

— CNBC’s Spencer Kimball contributed to this report.