Rare Earth Stocks: One decision by Donald Trump and rare earth stocks jumped sharply.

News Topical, Digital Desk : Rare Earth Stocks Shares of US-listed rare earth companies surged sharply during premarket trading on Tuesday after US President Donald Trump announced the creation of a Critical Mineral Reserve.

Rare Earth Shares Jump
Critical Metals shares rose 6.4 percent. USA Rare Earth gained 4.3 percent. MP Materials shares saw a 4 percent gain. Energy Fuels shares were up 5.6 percent. Idaho Strategic Resources jumped 6.2 percent, while NioCorp Developments shares gained 3.7 percent.

Why did shares surge?
This surge came after Trump unveiled Project Vault on Monday. Project Vault is described as the first strategic mineral reserve developed for the US private sector. Speaking in the Oval Office, Trump said that under this plan, $2 billion in private capital will be combined with a $10 billion loan from the US Export-Import Bank, resulting in a total project worth $12 billion.

Trump noted that for years, American companies have faced the risk of critical mineral shortages due to market disruptions. He stated that Project Vault aims to ensure that American businesses and workers are not harmed by any shortages. He also noted that the US already maintains a strategic petroleum reserve and stocks of critical minerals for national security. Now, a similar reserve is being created for American industry to prevent future problems.

Rare earth minerals have emerged as a key issue in the ongoing geopolitical competition between the US and China. China is the largest player in this supply chain. China accounts for approximately 60% of the world's rare earth mining and over 90% of magnet manufacturing.

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