US Rare Earth Miners Surge on Trump Stockpile Plan

Shares of U.S.-based rare earth mining companies jumped on Monday following reports that President Donald Trump is set to launch a comprehensive plan to create a strategic stockpile of critical minerals. The move aims to reduce American dependence on China for materials vital to electric vehicles, defense systems, and advanced technology.

President Donald Trump's administration is reportedly launching a major initiative to build a strategic stockpile of critical minerals, aiming to reduce U.S. reliance on China.

The proposal, dubbed "Project Vault," would establish the first-ever strategic stockpile of critical minerals specifically for the U.S. private sector. According to senior administration officials cited by Bloomberg, the plan involves pairing $1.67 billion in private capital with a $10 billion loan from the U.S. Export-Import Bank.

A White House spokesperson was not immediately available for comment on the matter.

Project Vault News Ignites Rally in Mining Stocks

Investors reacted positively to the news, betting that the initiative will boost domestic demand and unlock government-backed financing for the sector. The market response was swift, with key players seeing significant gains in early trading:

• MP Materials (MP): The operator of California's Mountain Pass mine saw its shares surge by 4%.

• USA Rare Earth (USAR): The company’s stock rallied 7%.

• Critical Metals Corp (SZZL): Shares jumped by 8%.

Washington's Growing Role in the Critical Minerals Sector

This initiative reflects an increasing trend of Washington taking a more direct role in securing the nation's supply of essential materials.

USA Rare Earth has already been in discussions with Howard Lutnick, pitching its domestic mining and magnet assets to the federal government. These talks have led to a proposed deal that could provide the company with approximately $1.6 billion in funding, contingent on certain conditions, and would include an equity stake for the U.S. government.

This follows a landmark agreement made last summer between the Department of Defense and MP Materials. That deal included a government equity stake, a price floor, and a long-term commitment to purchase a specified quantity of rare earth minerals and magnets.