Shares of U.S. rare earth miners surged Monday, after President Donald Trump threatened China with retaliation over its strict export controls on critical minerals.
USA Rare Earth and Critical Metals soared more than 25%, Energy Fuels jumped over 16%, MP Materials rallied about 20%, and NioCorp Developments and Ramaco Resources were up about 10%.
Trump on Friday threatened China with 100% tariffs starting Nov. 1 in retaliation for Beijing imposing strict export controls on rare earth elements. The president appeared to dial down his rhetoric on Sunday, saying the situation with China will “be fine.”
China’s restrictions go much further than its previous export controls, said Alicia Garcia Herrero, an analyst at research firm Natixis. Beijing is expanding export controls to five additional rare earth elements. It is also imposing controls on technology, equipment and labor used for refining the minerals, Herrero said.
Meanwhile, JPMorgan Chase said Monday it would invest up to $10 billion in industries that are crucial to U.S. national security including critical minerals. The investments will come in the form of direct equity stakes and venture capital, according to the bank.
“It has become painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing — all of which are essential for our national security,” JPMorgan CEO Jamie Dimon said in a press release.
And the Defense Department is accelerating its effort to stockpile $1 billion worth of critical minerals, according to the Financial Times.
Rare earths are a subset of critical minerals that are crucial inputs in U.S. weapons platforms, robotics, electric vehicles, electronics and other applications.