U.S. Rare Earth Stocks Rise as Trump Prepares Critical Mineral Stockpile Plan

TLDR

• Project Vault proposes a $10 billion U.S. loan and $1.67 billion in private capital to build a critical mineral stockpile.
• MP Materials, USA Rare Earth, and Critical Metals Corp saw stock gains after the plan was reported.
• USA Rare Earth held talks to secure $1.6 billion in federal support, possibly including a government equity stake.
• China currently controls over 60% of rare earth mining and 90% of global processing capacity.
• China’s 2025 export restrictions on rare earths heightened Western urgency to develop independent supply chains.

U.S.-listed rare earth mining stocks rose Monday after reports emerged of a new strategic mineral stockpile plan under President Trump. The initiative, named Project Vault, aims to strengthen domestic access to critical minerals and reduce dependency on China. The plan would combine $1.67 billion in private investment with a $10 billion loan from the U.S. Export-Import Bank.

Project Vault Spurs Gains Across Mining Sector

According to CNBC, MP Materials rose 4% during early Monday trading, while USA Rare Earth and Critical Metals Corp jumped 7% and 8% respectively. These moves followed investor response to Project Vault, which aims to boost domestic sourcing of essential minerals.

Bloomberg reported that Trump’s plan targets the electric vehicle, defense, and technology sectors. Industry officials confirmed that discussions with government partners are already in progress. USA Rare Earth reportedly held talks with Howard Lutnick to secure federal support for its mining and magnet assets.

Sources familiar with the discussions said the deal could provide USA Rare Earth with $1.6 billion in funding. This would include a proposed government equity stake, subject to specific terms and approvals. The company has not released any further information on the potential agreement.

China Maintains Dominance Over Rare Earth Supply Chains

As of early 2026, China continues to dominate the rare earth supply chain with control over 60% of global mining output. China also processes more than 90% of the rare earth elements used in advanced technologies. The Bayan Obo mine in Inner Mongolia remains one of the largest sources of these materials.

In 2025, China tightened its export restrictions on critical rare earth elements, including neodymium, dysprosium, and samarium. These elements are essential for magnets, electronics, and nuclear applications. The export limits have led to increased global trade tensions with the United States and the European Union.

China also controls other critical minerals, including gallium, germanium, graphite, and cobalt. These resources are crucial for electronics, energy storage, and semiconductor production. As a result, Western governments are moving to secure independent supply chains through local production and international partnerships.

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