Shares of U.S.-listed companies involved in the rare earth supply chain rose on Monday as investors continued to weigh the impact of China’s 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.
Prime Minister Donald Trump and Australian Prime Minister Anthony Albanese on Monday signed an agreement to invest in a joint venture to set up a critical mineral and rare earth supply chain independent of China.
U.S. Treasury Secretary Scott Bessent told CNBC in an exclusive interview last week that the Trump administration would impose price floors on a wide range of industries, including 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 led the sector’s rise, increasing by nearly 20%. energy fuel It rose by about 7%, but usa rare earths rebounded nearly 14%, Perpetua Resources advanced by more than 7%. MP material is also in the green range, up more than 2%. canadian lithium america increased by nearly 3%
The move comes as the Trump administration works to build a domestic rare earth supply chain, with the Pentagon signing a deal in July with MP Materials, the largest rare earth miner in the United States, that includes an equity investment, 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.
