The Trump administration faces growing pressure to expand its support for U.S. miners as it works to reduce the nation’s dependence on China for critical minerals.
Mark Chalmers, chief executive of Energy Fuels Inc (NYSEAMERICAN: UUUU) (TSE: EFR), said the White House must strike several deals with American companies to build a secure supply chain.
His comments followed the Pentagon’s decision to take an equity stake in MP Materials (NYSE: MP), the country’s largest rare earth miner. That deal included a guaranteed price floor and surprised many in the industry.
Chalmers called the step important but argued it is only the beginning.
“One company doesn’t fix it,” Chalmers said. “You have to have multiple deals to ensure that you don’t just have the company risk, because all companies aren’t going to deliver.”
Energy Fuels produces uranium and is developing a rare earth operation that could provide heavy rare earths vital for defense and electric vehicles.
The White House appears open to more action.
A Trump administration official said Washington is “not ruling out other deals with equity stakes or price floors.”
However, the official noted that not every initiative would look like the MP deal. Industry experts believe the administration is trying to diversify supply while protecting against China’s dominance.
Rare earths are key inputs in both weapons and consumer products. They are needed for F-35 fighter jets, smartphones, and electric vehicles. The U.S. Geological Survey reported that China supplied about 70 per cent of U.S. rare earth imports in 2023. Experts say Beijing has long manipulated the market, lowering prices to drive rivals out of business.
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Heavy rare earths remain a critical puzzle piece
Investors quickly responded. Energy Fuels’ stock rose nearly 200 per cent after the Pentagon announced its MP Materials investment. Shares of NioCorp Developments (NASDAQ: NIO) also jumped almost 200 per cent. Meanwhile, Ramaco Resources (NASDAQ: METC) gained 140 per cent, while USA Rare Earth, Inc. (NASDAQ: USAR) climbed more than 70 per cent. Many believe these firms could be future deal targets.
Heavy rare earths remain a critical piece of the puzzle. MP Materials will likely require more of them as it builds a second facility to manufacture magnets. Those magnets must withstand high temperatures in electric motors and military systems.
Furthermore, Chalmers said Energy Fuels’ rare earth business aims to provide such materials and complement MP’s output. “The government cannot bet on one horse — it just doesn’t make sense,” he said. He added that his team spends considerable time in Washington promoting the firm’s strategy.
Canadian-based NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50), operating in Nevada, has also been advancing exploration programs that include antimony, a critical mineral used in defense applications and energy storage, which Washington has identified as another vulnerable point in the supply chain.
The debate extends beyond rare earths. Lithium, cobalt, and graphite are also essential for energy storage and electronics. Rich Nolan, head of the National Mining Association, said these markets need support to smooth out price swings. In his view, federal action could ensure miners survive downturns and continue building capacity.
One possible move involves Lithium Americas Corp (TSE: LAC) (NYSE: LAC), which is developing the Thacker Pass project in northern Nevada. The mine is expected to become one of North America’s largest lithium sources.
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Price floors may be most important feature
The first phase could begin operations in late 2027. The Trump administration has proposed taking an equity stake in the company as it renegotiates a USD$2.2 billion Department of Energy loan.
Lithium Americas stock soared more than 90 per cent on reports of government interest.
Albemarle Corp (NYSE: ALB), a major global lithium producer based in North Carolina, also sees potential. Chief executive Kent Masters said a deal “in the ballpark” of the MP model could support lithium miners. He argued that government involvement creates stability that encourages private investment. He pointed to Apple’s recent offtake agreement with MP Materials, signed shortly after the Defense Department deal, as proof that price signals matter.
Price floors may be the most important feature for critical minerals. Masters said the Pentagon’s guarantee under the MP agreement was the “critical part.”
That mechanism ensures MP gets at least USD$110 per kilogram for neodymium-praseodymium oxide, or NdPr. When the market price falls below that level, the government pays the difference. When the price rises above, the Pentagon collects 30 per cent of the gains.
The results were immediate. The price of NdPr rose 40 per cent following the deal, according to Castilloux. He said the agreement proves that Washington can break free from China’s artificially suppressed pricing. Furthermore, he called it a blueprint for markets where foreign manipulation harms U.S. and allied producers.
Chalmers maintains that Washington must continue down this path. He stressed that diversifying the supply base remains the only way to protect against risks.
“We spend a lot of time in D.C. making sure they understand the merits of our strategy,” Chalmers said.
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Rare earths central to modern warfare
The administration appears to recognize the stakes. Rare earths and other critical minerals are central to modern warfare and consumer technology. Additionally, they underpin the transition to electric vehicles and renewable energy. Washington now faces a choice: rely on foreign supply or invest in domestic mining.
By backing MP Materials, the government signalled its willingness to intervene. The next test will be whether it spreads that support across several companies and minerals. Industry leaders argue that doing so will not only strengthen U.S. security but also create a foundation for long-term growth.
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