Rare earth miners jump as Trump is eyeing mineral stockpile

President Donald Trump announced the establishment of a U.S. critical mineral reserve late Monday, sending shares of miners higher in extended trading.

The proposal, known as Project Vault, would launch a first-of-its-kind strategic critical minerals stockpile designed for the U.S. private sector, the president said, speaking at the White House on Monday afternoon. The plan pairs $1.67 billion in private capital with a $10 billion loan from the U.S. Export-Import Bank, according to a White House official. Trump’s move is aimed at cutting America’s dependence on China for materials essential to electric vehicles, defense systems and advanced technology.

MP Materials, the operator of the Mountain Pass mine in California, rose more than 2% in extended trading. USA Rare Earth and Critical Metals Corp. popped more than 2% and over 1%, respectively, as investors bet the initiative could accelerate domestic demand and government-backed financing for the sector.

Bloomberg News first reported on the proposal earlier Monday.

USA Rare Earth has already held discussions with Commerce Secretary Howard Lutnick, pitching its domestic mining and magnet assets to the federal government. Those talks would ultimately lead to a proposed deal that could provide the company with about $1.6 billion in funding, subject to certain conditions, and include a U.S. government equity stake.

The moves build on a more direct role Washington has begun taking in the sector. The Department of Defense struck a landmark agreement with MP Materials last summer that included an equity stake, price floor, and long-term agreement to buy a specific amount of rare earth minerals and magnets.

— CNBC’s Spencer Kimball contributed to this report.