Shares of rare earth material producer, MP Materials Corp. (NYSE: MP), rose approximately 20 per cent on Monday as a market response to the latest news out of the White House.
President Donald Trump is preparing an executive order to permit the stockpiling of critical metals from the Pacific Ocean, according to a Financial Times report published over the weekend.
The initiative aims to counter China’s dominance in rare earth supply chains and battery minerals, as the United States works to secure self-sufficiency in critical mineral resources.
“As the Trump administration has done with shipbuilding and critical minerals more broadly, catalysing US government focus on the areas of greatest vulnerability to PRC ambitions is essential,” said Alexander Gray, chief of staff to the U.S. national security adviser in Trump’s first term.
Last week, China imposed export restrictions on certain rare earth elements in response to reciprocal tariffs from the Trump administration. According to the U.S. Geological Survey, China produces about 90 per cent of the world’s refined rare earths.
Rare earth elements are vital for manufacturing high-tech products, including electronics, renewable energy systems, and defense technologies. Furthermore, MP Materials enjoys the position as the only active rare earth mine and processing facility in the U.S. It is located at Mountain Pass, California.
Another factor potentially driving the stock’s performance is broader market dynamics. Recent reports indicate that U.S. stock markets have been volatile due to shifting tariff policies. MP Materials isn’t directly tied to consumer electronics, however its rare earths are components in semiconductors and magnets used in tech and renewable energy applications. Positive sentiment in these adjacent industries may be giving MP a lift.
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Read more: NevGold pulls critical mineral antimony from Limo Butte property in Nevada
Multiple companies have mobilized for rare earth production
MP Materials isn’t the only company enjoying substantial boosts after Trump’s news.
Shares of USA Rare Earth Inc (NASDAQ: USAR) were trading 52.5 per cent higher at last check, while shares of NioCorp Developments Ltd (NASDAQ: NB) were up 14.6 per cent.
Rare earth elements are a group of 17 metals essential to modern technology and clean energy solutions. Despite their name, most rare earths are abundant in the Earth’s crust, but they rarely found in concentrated forms.
These elements play roles in the production of high-performance magnets used in electric vehicles, wind turbines, smartphones, and military applications. Rare earths are also vital in polishing powders, catalysts, and rechargeable batteries.
Antimony, a mineral commonly found in flame retardants, semiconductors and allows to improve strength and corrosion resistance, is often spoken alongside rare earth elements despite not being one. That’s primarily because like rare earths, China dominates antimony production and processing. This has spurred the same national security and supply chain concerns in the US and other allied nations.
As such, both antimony and rare earths are considered critical minerals essential for industrial and defense technologies.
Several companies are actively mining or exploring for antimony as global demand for critical minerals rises. China remains the dominant producer, but Western firms are working to secure alternative sources.
Perpetua Resources (NASDAQ: PPTA) (TSE: PPTA) is developing the Stibnite Gold Project in Idaho, which includes one of the largest known antimony resources in the United States. NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) has also entered the antimony space, with its exploration work in Nevada indicating potential for critical mineral development alongside its primary gold targets.
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