The Trump administration is weighing the use of the Defense Production Act to funnel loans and other federal support into US rare earth mining, processing, and magnet-making, a move designed to blunt Beijing’s near-monopoly on the critical minerals supply chain.
Nevada-based MP Materials — the lone US producer — stands to gain most. Deputy Defense Secretary Steve Feinberg has been canvassing funding options for the company, and the stock surged 14-17% to an intraday high of $29.96 after news of the plan broke.
Defense Secretary Pete Hegseth told lawmakers this week that MP Materials “is a great example of a place where we can partner with industry.” Interior Secretary Doug Burgum called China’s 85% share of global processing “a wake-up call for America,” warning that the existing US stockpile is “massively insufficient.”
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Policy hands say a fresh DPA directive would let Trump signal toughness on China while fast-tracking projects already identified by National Energy Dominance Council lead David Copley. Yet the White House’s parallel downsizing of federal bureaucracy, driven by Elon Musk’s cost-cutting mandate, has hollowed out supply-chain offices just as demand for technical vetting escalates.
Beyond Mountain Pass, officials are scouting “shovel-ready” investments in downstream magnet plants, but even optimistic Pentagon projections would meet only a fraction of Chinese output by 2027.
Information for this story was found via Mining.com, CSIS, and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
