A dump truck moves raw ore inside the pit at the Mountain Pass mine, operated by MP Materials, in Mountain Pass, California, U.S., on Friday, June 7, 2019.
Joe Buglewicz | Bloomberg | Getty Images
Shares of U.S. rare earth miners surged in early trading Monday, after President Donald Trump threatened China with retaliation over its strict export controls.
USA Rare Earth soared more than 18%, Critical Metals surged 18%, Energy Fuels jumped more than 11%, and MP Materials rallied about 8%.
Trump on Friday threatened China with a “massive” increase in tariffs in retaliation for Beijing imposing strict export controls on rare earth elements. The president then dialed down his rhetoric on Sunday, saying the situation with China will “be fine.”
The Defense Department, meanwhile, is accelerating its effort to stockpile $1 billion worth of critical minerals, according to The Financial Times.
And JPMorgan Chase said Monday it would invest up to $10 billion in companies that are crucial to U.S. national security.
“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 press release.
Rare earths are a subset of critical minerals that are crucial inputs in U.S. weapons platforms, robotics, electric vehicles and other applications.