The Trump administration is seemingly stepping back from plans to guarantee floor prices for US critical minerals projects, Reuters reported, citing multiple sources who pointed to limited congressional funding and the operational difficulty of setting market pricing.
At a closed-door meeting earlier this month hosted by a Washington think tank, two senior Trump officials told US minerals executives their projects would need to prove financial independence without government price support, three attendees told Reuters.
“We’re not here to prop you guys up,” Audrey Robertson, assistant secretary of the Department of Energy and head of its Office of Critical Minerals and Energy Innovation, told executives, according to the Reuters account. “Don’t come to us expecting that.”
Robertson was joined by Joshua Kroon, deputy assistant secretary for textiles, consumer goods, materials, critical minerals and metals at the Department of Commerce’s International Trade Administration, and both officials said Washington is no longer in a position to offer price floors, according to the same sources.
The shift would reportedly guide future deals and would not affect MP Materials and its price floor, which the government agreed to as part of an investment package last July, and Reuters added it did not suggest any part of MP’s deal was in jeopardy.
The MP investment drew internal and congressional concern that funding for a price floor of at least $110 per kg for two types of rare earths had not been authorized by Congress, two additional sources familiar with the discussions told Reuters.
Market reference points also moved, Reuters reported, citing USA Rare Earth saying it intends to buy those same types of rare earths for $125 per kg on the open market.
After publication, the Energy Department said the Reuters article was “false and relies on unnamed sources that are either misinformed or deliberately misleading,” and said it was inaccurate without detailing specific errors, Reuters reported.
MP Materials did not respond to Reuters’ emailed request for comment, but later posted that there had been no change to its contract or the government’s obligations.
“Any implication that the U.S. government has retreated from its commitments to MP Materials is simply false,” the company said.
The firm also said the Reuters report was “inaccurate, misleading, and inconsistent with the facts,” arguing it followed a pattern of speculative and misleading reporting.
Reuters framed the policy direction as a reversal from earlier industry expectations and contrasted it with July closed-door messaging where officials said MP’s floor price was “not a one-off” and that broader price supports were being developed.
Since then, he administration has taken equity positions in Lithium Americas, Trilogy Metals, USA Rare Earth and others, with none offered price floors, which the report said raised questions about the tool’s durability.
The White House declined to say whether it plans to issue new price floors while saying it will continue deregulation, tax cuts and targeted investments in the sector “while being good stewards of taxpayer dollars.”
Information for this story was found via Reuters and the sources and companies 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.
One Response
If China starts Dumping critical minerals and US Domestic Production dies on the vine,l the G. Will step up to protect these heavy Capx requireing small firms. It’s either that or permanently figure out how circumnavigate any Chinese sanctions. Somehow I don’t see the US Government setting up shell companies to provide materials to the Defense industries. 🙂