❓WHAT HAPPENED: Shares of U.S.-listed rare earth miners surged following news of a strategic stockpile plan.
👤WHO WAS INVOLVED: President Donald J. Trump, MP Materials, USA Rare Earth, Critical Metals Corp.
📍WHEN & WHERE: February 2, 2026, United States.
🎯IMPACT: Trump’s initiative could boost domestic demand and government-backed financing for rare earth sectors, while reducing U.S. dependence on China.
Shares of U.S.-listed rare-earth mining companies rose on February 2 after reports that President Donald J. Trump is advancing a plan to build a strategic stockpile of critical minerals through a partnership with the private sector. The initiative, known as Project Vault, is intended to strengthen domestic supply chains and reduce U.S. dependence on China for materials essential to industries such as electric vehicles, renewable energy, and defense.
According to Bloomberg, citing senior administration officials, the proposal would be financed with $1.67 billion in private capital and a $10 billion loan from the U.S. Export-Import Bank. Unlike traditional government reserves, the stockpile would be structured to support private-sector participation while ensuring access to key materials during supply disruptions.
Market reaction was swift. MP Materials, which operates the Mountain Pass rare earth mine in California, gained about four percent in early trading. Shares of USA Rare Earth and Critical Metals Corp climbed roughly seven percent and eight percent, respectively, as investors anticipated increased domestic demand and stronger government backing for U.S.-based producers.
USA Rare Earth is presenting its mining and magnet manufacturing assets as key to a potential arrangement with the federal government. Those talks could result in approximately $1.6 billion in funding, subject to certain conditions, and may include an equity stake for the U.S. government.
Federal involvement in the rare earth sector has expanded in recent years. The Department of War previously entered into a major agreement with MP Materials that included both an equity investment and a long-term purchase commitment for rare earth minerals and magnets, reflecting the strategic importance of these materials.
Rare earth elements are a group of 17 metals used in high-performance magnets, electronics, advanced weapons systems, and renewable energy technologies. China currently dominates global refining and magnet production, but President Trump believes this is not an inevitable consequence of geography, as the materials are not actually all that rare, they are simply difficult to process.
Beyond domestic initiatives, the Trump administration has also pursued international agreements to diversify supply. The Trump administration has announced major rare earth and critical minerals deals with allies in Asia and with Australia, aimed at reducing the leverage China gets from being able to restrict exports. A deal on rare earths has also been struck with Ukraine.
At the same time, major U.S. technology companies have committed hundreds of millions of dollars to support domestic rare earth mining and processing, underscoring growing private-sector alignment with government efforts.
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