US President Donald Trump speaks to the press a few important minerals stockpile with $12 billion in preliminary funding, as Washington seeks to decrease reliance on China for uncommon earths and different sources, within the Oval Workplace of the White Home in Washington, DC, on February 2, 2026.
Saul Loeb | Afp | Getty Pictures
U.S.-listed uncommon earth miners surged in premarket buying and selling on Tuesday, following President Donald Trump’s announcement to ascertain a important mineral reserve.
The strikes come after Trump on Monday outlined particulars for Challenge Vault, a first-of-its-kind strategic minerals reserve designed for the U.S. non-public sector.
The plan is about to pool $2 billion in non-public capital with a $10 billion mortgage from the U.S. Export-Import Financial institution, Trump mentioned within the Oval Workplace.
“For years, American companies have risked working out of important minerals throughout market disruptions. At this time, we’re launching what can be often called Challenge Vault, to make sure that American companies and staff are by no means harmed by any scarcity,” Trump mentioned.
“We do not wish to ever undergo what we went by means of a yr in the past — though it did work out,” he continued.
“Simply as we now have lengthy had a strategic petroleum reserve and a stockpile of important minerals for nationwide protection, we’re now creating this reserve for American trade, so we have no issues,” Trump mentioned.
Uncommon earths have come to the fore as a key bargaining chip within the ongoing geopolitical rivalry between the U.S. and China, the world’s two largest economies.
Regional composition of uncommon earths and everlasting magnet manufacturing in 2024, in accordance with knowledge compiled by the Worldwide Vitality Company.
IEA
To make certain, China is the undisputed chief of the important minerals provide chain, liable for practically 60% of the world’s uncommon earths mining and greater than 90% of magnet manufacturing.
A subset of important minerals, uncommon earths discuss with 17 components on the periodic desk which have an atomic construction that offers them particular magnetic properties. These supplies are important elements to an unlimited array of recent applied sciences, from on a regular basis electronics, similar to smartphones, to electrical autos and navy tools.
From an trade perspective, it’s critically necessary to see the U.S. taking “decisive steps” to shore up minerals and uncommon earths, mentioned Wade Senti, president of Florida-based magnet maker Superior Magnet Lab.
“However wanting forward, what’s much more important can be placing these minerals to make use of in everlasting magnets that energy the applied sciences of the long run—from EVs to humanoid robots,” Senti instructed CNBC by e-mail.
“Revolutionary everlasting magnet know-how can carry out with a big number of completely different important minerals—not simply neodymium—giving America extra optionality and instruments in provide chain safety,” he added.
— CNBC’s Yun Li contributed to this report.
