Shares of rare earth and critical minerals companies climbed as markets reacted to reports that former President Donald Trump plans to launch a US$12 billion stockpile for critical minerals, a move aimed at reducing U.S. dependence on foreign supply chains, especially China’s dominant position in rare earth processing.
Investors responded positively, bidding up equities of companies involved in rare earth mining, processing and related technologies. The proposed stockpile initiative has been cited by analysts as a catalyst for long-term demand for domestically sourced critical minerals that are essential to electric vehicles, renewable energy systems, defence technologies, and high-tech manufacturing.
Market participants said the news also increased expectations that the U.S. Export-Import Bank will approve what could be its largest loan ever, supporting projects tied to mineral supply, processing infrastructure, and strategic reserves.
Rare earth elements, which include neodymium, praseodymium and dysprosium among others, are key components in permanent magnets, electric motors, wind turbines, and a wide range of electronic applications. China currently controls a large share of global rare earth processing capacity, making supply diversification a priority for U.S. policymakers and manufacturers.
Investors noted that the stockpile programme signals heightened government focus on securing supply chains for critical inputs, which could translate into increased capital spending, exploration activity, and strategic partnerships in the sector over the coming days.
