MP Materials Rockets 17% After Trump Admin Mulls Prioritizing U.S. Based Rare Earth Projects

Yesterday MP Materials jumped as much as 17% to $29.96 —its highest intraday level since March—amid renewed government efforts to secure domestic rare earth supplies.

The Trump administration is drafting a plan to invoke Cold War-era powers under the Defense Production Act (DPA) to prioritize and fund rare earth projects deemed critical to national security, according to Bloomberg.

This includes financing for mining, processing, and downstream technologies to reduce U.S. dependence on China. A final strategy and timeline are still being developed.

MP Materials, the only domestic producer of rare earths, is expected to benefit significantly. Deputy Defense Secretary Steve Feinberg is reportedly helping to secure additional funding for the Nevada-based company, which has already received millions from the Pentagon.

Bloomberg writes that Defense Secretary Pete Hegseth recently told Congress that MP Materials “is a great example of a place where we can partner with industry,” while Feinberg is focused on sourcing rare earth supply.

Interior Secretary Doug Burgum called the situation “a wake-up call for America,” warning, “We are so exposed, right now — precariously exposed — to China’s grip on not just the mining, but the processing,” which Beijing dominates with 85% global control. He said the current U.S. stockpile is “massively insufficient” and may require billions in new investment.

Efforts have intensified since China restricted rare earth exports in April, pressuring U.S. stockpiles and supply chains for defense, automotive, and aerospace industries. At the National Energy Dominance Council, David Copley is leading efforts to coordinate proposals and funding options under the DPA and other tools.

The White House and Pentagon did not immediately respond to requests for comment. MP Materials declined to comment.

MP is one of just a few U.S. based rare earth pure plays, alongside names like USAR and UUUU.