A wheel loader operator fills a truck with ore at the MP Materials rare earth mine in Mountain Pass, California, United States, January 30, 2020.
Steve Marcus | Reuters
Shares of U.S. rare earth and critical mineral mining companies jumped Thursday after China tightened export restrictions, fueling market speculation that the Trump administration would move more aggressively to invest in building a domestic supply chain.
Rare Earth from the United States jumped 7%, MP materials jumped more than 4%, and Energy fuels was up nearly 6% before the market opened. Lithium Americas jumped about 5% and Trilogy Metals climbed more than 8%.
Beijing now requires foreign entities to obtain a license to export products containing more than 0.1% domestically sourced rare earths, according to China’s Ministry of Commerce. Companies will also need export licenses if they use Chinese magnet mining, refining or recycling technology.
“The White House and relevant agencies are closely assessing any impact of the new rules, which were announced without notice and imposed in an apparent effort to exert control over entire global technology supply chains,” a White House official told CNBC.
The White House and the US mining industry have accused China of manipulating the market to drive out foreign competition.
The Trump administration took stakes in MP Materials, Lithium Americas and Trilogy Metals this year in an effort to defend its domestic supply chain against China.
USA Rare Earth and Energy Fuels have not reached deals with the White House, but their CEOs told CNBC they are in close contact with the Trump administration.
This is a developing story. Please check again for updates.
