Shares of U.S.-listed minerals explorer Trilogy Metals (TSE: TMQ) (NYSE: TMQ) surged more than 225 per cent on Tuesday after the White House announced a 10 per cent stake in the company.
The U.S. government is investing USD$35.6 million into the company to support domestic supplies of copper and other critical minerals.
The announcement comes as part of a broader push to develop the Ambler mining district in Alaska. Trilogy Metals said the area hosts some of the world’s richest copper-dominant polymetallic deposits. The company also welcomed former President Trump’s decision to grant permits for the Ambler Road project, which reverses the Biden administration’s previous rejection.
Trilogy Metals said the permits reflect “a renewed federal commitment to responsible resource development” and designate the Ambler Road as critical infrastructure. The company added that the project will strengthen domestic supply chains for copper, cobalt, zinc, and lead. These minerals are essential for energy infrastructure, defense technologies, and manufacturing.
Opponents of the 211-mile Ambler Road warn it could damage landscapes that support local communities and wildlife. However, the U.S. government sees developing the district as strategically important.
China currently dominates the critical minerals supply chain, producing nearly 70 per cent of the world’s rare earths and refining almost 90 per cent. Consequently, Western officials have highlighted Beijing’s control as a growing challenge.
Demand for critical minerals is expected to rise sharply as the global clean energy transition accelerates. In addition, expanding domestic production could reduce reliance on imports and improve supply chain security. Analysts say the White House’s investment signals a strong federal commitment to securing key resources and supporting U.S. manufacturing competitiveness.
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Trump administration streamlines permitting process
This also isn’t the first time the United States government has gotten involved in the pursuit of critical minerals.
The Department of Defense recently acquired a 15 per cent stake in MP Materials (NYSE: MP), the country’s largest rare earth producer. The investment supports the development of a domestic supply chain for rare earth magnets, essential for defense and clean energy technologies. Furthermore, the DoD provided funding to help construct a heavy rare earth separation plant in California.
Additionally, the Trump administration has streamlined permitting for critical mineral projects using the FAST-41 Act. Perpetua Resources Corp (TSE: PPTA) (NASDAQ: PPTA) Stibnite Gold Project in Idaho benefits from this process. The project is expected to supply a significant portion of U.S. antimony demand during its first six years. The administration also approved $59.2 million under the Defense Production Act to advance construction readiness and permitting for Stibnite.
Meanwhile, the government has invested in Lithium Americas Corp’s (TSE: LAC) (NYSE: LAC) (FRA: WUC) Thacker Pass project for lithium production in Nevada. The move reflects the strategic importance of lithium for electric vehicles, energy storage, and clean energy technologies.
Looking ahead, companies such as NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) could benefit from growing federal involvement. NevGold’s Limousine Butte Project in Nevada has shown strong gold and antimony results. Consequently, projects like Limousine Butte may play a key role in securing the nation’s critical mineral supply.
Analysts say federal support signals a long-term commitment to domestic mineral production. In addition, it could reduce reliance on foreign sources and strengthen U.S. manufacturing and energy security.
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NevGold Corp is a sponsor of Mugglehead news coverage
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