The Trump administration has zeroed in on critical minerals to shore up US supply chains. Together, the following headlines signal the administration’s aggressive pivot toward industrial policy to reduce US dependence on China and other global rare earths strengths, but they might also mean higher costs across the energy transition supply chain. Here’s the rundown:
One big investment: The Pentagon is investing $400 million in US-based rare earths producer MP Materials (which operates California's Mountain Pass mine), taking a 15% equity stake and becoming its largest shareholder in part of a multi-billion-dollar push to secure domestic critical mineral supply chains.
One big research boon: Shares of Wyoming’s Ramaco Resources jumped 31% in a day last week after a study confirmed it could economically extract rare earths from its Brook Mine coal site. The company has hinted at a tie-in with the Pentagon about future supply deals.
One big headline to keep in mind: President Trump announced a 50% tariff on all copper imports late last week, which sent prices to a record high as manufacturers got stockpiling. The move is likely to raise prices for critical hardware like transmission cables, EV batteries, and data centers.