Rare earth miners jump as Trump is eyeing mineral stockpile

Shares of U.S.-listed rare earth miners rose on Monday following news that President Donald Trump is preparing a comprehensive plan to create a strategic stockpile of critical minerals.

The proposal, known as Project Vault, would launch a first-of-its-kind strategic critical mineral stockpile designed for the U.S. private sector, according to a White House official. The plan pairs $1.67 billion in private capital with a $10 billion loan from the Export-Import Bank of the United States, the person said. Trump’s move aims to reduce America’s dependence on China for materials needed for electric vehicles, defense systems and advanced technology.

Multi-Purpose MaterialsThe operator of the Mountain Pass mine in California rose 6% in early trading on Monday. USA Rare Earth And Critical Metals Corporation It rallied 13% and 12% respectively, as investors bet the initiative could boost domestic demand and government-backed financing for the sector.

Bloomberg News The proposal was first reported early Monday.

USA Rare Earth has already been in talks with Howard Lutnick to present its local mining and magnet assets to the federal government. Those talks would eventually lead to a proposed deal that could provide the company with about $1.6 billion in financing, subject to certain conditions, and could include an equity stake from the U.S. government.

These moves build on a more direct role that Washington has begun to take on in the sector. The Department of Defense signed a landmark agreement with MP Materials last summer that included an equity stake, a floor price and a long-term agreement to purchase a specified quantity of rare earth minerals and magnets.

—CNBC’s Spencer Kimball contributed to this report.