Shares of U.S.-listed companies involved in the rare earth supply chain rose on Monday as investors continued to weigh the impact of export restrictions on domestic producers.
Rare earths are used in everything from semiconductors and fighter jets to electric car motors and are essential minerals for many aspects of modern life, particularly in the technology sector and the energy transition.
U.S. Treasury Secretary Scott Bessent told CNBC in an exclusive interview last week that President Donald Trump’s administration will set a price floor for rare earths to counter market manipulation by China. Shares of rare earth and critical mineral extractors have risen several times in the past as investors consider which companies may be future targets of government industrial policy.
niocorp The stock rose 9.3% shortly after the market opened at 9:45 a.m. New York time, leading the sector’s gains. energy fuel The last seen was 3.8% higher, but usa rare earths Earned a profit of 2.9%, Perpetua Resources It rose by 3.4%. MP material is also in green, up 1.8%.
Canadian companies make profits; lithium america Trilogy Metals increased by 2.6% and 2.2%, respectively.
The move comes as the Trump administration works to build its own domestic rare earth supply chain.
In July, the Department of Defense signed a deal with MP Materials, the largest rare earths miner in the United States, that includes an equity stake, a price floor, and an offtake agreement.
Investors expect the government to support additional miners. William Blair initiated coverage of U.S. Rare Earths Inc. on Monday with an Outperform rating on expectations that the Trump administration “may soon acquire a significant stake in the company.”
Michael Silver, CEO and chairman of rare earth distributor American Elements, told CNBC’s “Squawk Box” last week that the U.S. has enough heavy rare metals for military use, but supply chain strains could impact EVs, lasers and “quite a few commercial technologies.”
Getting the mine up and running “should be treated as a national priority,” Silver said, adding that government involvement and subsidies were likely.
Under new rules announced earlier this month, foreign companies will need approval from the Chinese government to export rare earths and will be required to explain how they will be used.
-CNBC’s Spencer Kimball contributed to this report.
