January 15, 2026
Finance

US Government Advances Domestic Rare Earths Strategy with Bipartisan Support

Federal Moves Target Supply Chain Security and Domestic Production of Critical Minerals

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Summary

The United States has intensified efforts to secure its rare earth minerals supply chain, with coordinated actions from both the executive and legislative branches aimed at reducing dependency on foreign sources. These initiatives include negotiation strategies for pricing frameworks, potential tariffs, and the establishment of a strategically significant mineral reserve to protect the national economy and defense capabilities. Several key companies stand poised to benefit from this renewed focus on domestic sourcing and stockpiling of these critical materials.

Key Points

The U.S. administration has directed officials to negotiate price floors and consider tariffs on rare earths and critical minerals to address national security concerns.
Congress plans to introduce the SECURE Minerals Act to create a $2.5 billion Strategic Resilience Reserve, safeguarding critical mineral supplies against market volatility.
The bill includes establishing an independent board, modeled after the Federal Reserve, to manage acquisition and storage of lithium, nickel, and rare earths essential for defense and electric vehicles.
Five companies—MP Materials, Critical Metals Corp., USA Rare Earth, Lithium Americas, and Trilogy Metals—are positioned as key beneficiaries of federal investment and policy focus on domestic rare earth production.

The United States is accelerating measures to strengthen its domestic rare earth elements supply chain amid growing concerns over national security and economic stability. Recent moves from both President Donald Trump’s administration and a bipartisan group in Congress underscore a comprehensive strategy to secure critical mineral resources vital for defense technologies and electric vehicle production.

On the executive front, directives were issued on Wednesday instructing government representatives to engage with international allies to establish potential price floors for rare earths and critical minerals. This approach also includes the contemplation of tariffs against trade partners where necessary. These actions stem from a formal investigation initiated earlier in 2025, which identified the importation of critical minerals and their derivatives as a national security risk.

Parallel to the White House's directives, Congress is preparing to introduce a landmark legislative bill, named the SECURE Minerals Act. Unveiled by Senators Jeanne Shaheen (D-NH) and Todd Young (R-IN), this bipartisan initiative is designed to create a $2.5 billion Strategic Resilience Reserve. The reserve aims to build a domestic stockpile of critical minerals that will shield the American economy from external price volatility and supply interruptions.

The legislation proposes the establishment of an independent governing board designed similarly to the Federal Reserve, tasked with overseeing the procurement and storage of essential minerals including lithium, nickel, and various rare earth elements. These materials are particularly crucial not only for defense systems but also for the burgeoning electric vehicle industry. Senator Young emphasized the importance of such a reserve, calling it an “aggressive step” necessary for safeguarding both national security and economic interests.

As these federal efforts gain momentum, several key companies operating within the domestic rare earth supply chain are positioned to be central players in this evolving landscape. Increasing government funding, 'Buy American' mandates, and potential trade restrictions are key drivers for this shift.

MP Materials Corp. (NYSE: MP) stands as the only integrated mine-to-magnet manufacturer in the Western Hemisphere. Its operations include the Mountain Pass mine in California along with a major magnet production facility in Texas. The company has attracted substantial government-backed investments and offtake agreements, reinforcing its leading position in the sector.

Critical Metals Corp. (NASDAQ: CRML) owns the Tanbreez project located in Greenland, which represents one of the largest rare earth deposits globally. Renewed strategic interests from the administration in Greenland’s mineral resources have placed CRML prominently within Arctic security considerations, contributing to its breakout status in 2026.

USA Rare Earth (NASDAQ: USAR) is focused on the Round Top deposit in Texas, notable for its rich reserves of heavy rare earths. Its management has recently accelerated production timelines to 2028 to align with the administration’s directives aimed at addressing emergency energy requirements.

Lithium Americas Corp. (NYSE: LAC) primarily engages in lithium extraction via the Thacker Pass mine in Nevada. This company exemplifies the national strategy of viewing critical minerals as a unified security asset, evidenced by significant government equity participation.

Trilogy Metals Inc. (AMEX: TMQ) has garnered considerable attention following direct equity investments by the U.S. government in 2025. Its projects in Alaska’s Ambler Mining District are a critical component for diversifying the supply chain not only for rare earths but also for copper and cobalt, which are vital for defense manufacturing.

The combined government initiatives and strategic emphasis on these firms reflect a clear policy trajectory aimed at reducing foreign reliance, enhancing domestic capabilities, and securing critical mineral resources for both economic and national defense purposes.

Risks
  • Dependency on successful international negotiations for price floors and tariffs could pose challenges to supply chain stability.
  • Potential delays or legislative hurdles in passing the SECURE Minerals Act may slow the establishment of the strategic mineral reserve.
  • Acceleration of production timelines by companies such as USA Rare Earth may encounter operational or logistical obstacles.
  • Market fluctuations and geopolitical factors could impact the effectiveness of domestic stockpiles and government equity investments.
Disclosure
Education only / not financial advice
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MP - positive CRML - positive USAR - positive LAC - neutral TMQ - neutral
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