Rare earth miners jump as Trump is reportedly eyeing mineral stockpile to reduce China dependence

Shares of U.S.-listed uncommon world miners jumped Monday aft quality that President Donald Trump is preparing a sweeping program to physique a strategical stockpile of captious minerals.

The proposal, known arsenic Project Vault, would motorboat a first-of-its-kind strategical critical-minerals stockpile designed for the U.S. backstage sector, according to Bloomberg news, which cited elder medication officials acquainted with the matter. The program pairs $1.67 cardinal successful backstage superior with a $10 cardinal indebtedness from the U.S. Export-Import Bank, the outlet said. Trump's determination is aimed astatine cutting America's dependence connected China for materials indispensable to electrical vehicles, defence systems and precocious technology.

MP Materials, the relation of the Mountain Pass excavation successful California, surged 4% successful aboriginal trading Monday. USA Rare Earth and Critical Metals Corp rallied 7% and 8%, respectively, arsenic investors stake the inaugural could accelerate home request and government-backed financing for the sector.

A White House spokesperson wasn't instantly disposable to comment.

USA Rare Earth has already held discussions with Howard Lutnick, pitching its home mining and magnet assets to the national government. Those talks would yet pb to a projected woody that could supply the institution with astir $1.6 cardinal successful funding, taxable to definite conditions, and see a US authorities equity stake.

The moves physique connected a much nonstop relation Washington has begun taking successful the sector. The Department of Defense struck a landmark agreement with MP Materials past summertime that included an equity stake, terms level and semipermanent statement to bargain a circumstantial magnitude of uncommon world minerals and magnets.

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