Highlights

• U.S. government acquires equity stakes in mineral producers like Trilogy Metals, Lithium Americas, and MP Materials to counter China's strategic dominance.
• Investments totaling hundreds of millions aim to rebuild domestic rare earth and strategic minerals supply chains by 2028.
• The approach raises questions about governance, market distortion, and potential environmental trade-offs in mineral production.

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In a bold move that underscores the fusion of industrial policy and national security, the Trump administration has begun acquiring direct equity stakes in critical mineral producers — including Trilogy Metals (NYSE: TMQ), Lithium Americas (NYSE: LAC), and MP Materials (NYSE: MP). Reporting by Alex Kimani for Oilprice.com (Oct 13, 2025) reveals that these investments, totaling hundreds of millions of dollars, are designed to secure U.S. access to rare earths and strategic minerals amid escalating tensions with China, which last week expanded export controls to twelve metals, including dysprosium, terbium, and molybdenum.

The New Resource Nationalism

Pointed out as a “new nationalism”,  in OilPrice.com (opens in a new tab), the U.S. government’s purchase of a 10 % stake in Trilogy Metals — with warrants for another 7.5 % — has drawn both applause and alarm. The administration also reversed Biden-era restrictions on the Ambler Road project in Alaska, unlocking access to the copper- and cobalt-rich Ambler Mining District. Trilogy’s stock has soared more than 1,200 % over twelve months, approaching a $1 billion valuation. Meanwhile, MP Materials gained Pentagon backing through a $400 million preferred equity issue and $150 million loan, plus a $110/kg floor price guarantee for NdPr magnets — roughly twice current spot prices — effectively establishing a price safety net for U.S. magnet producers.

Critical Questions REEx Raises

While the strategy signals seriousness about rebuilding America’s rare-earth supply chain, it also raises fundamental concerns:

• Governance: Is direct federal ownership in publicly listed miners — including Canadian firms — appropriate or sustainable?
• Market distortion: Do guaranteed price floors risk disincentivizing competition or innovation?
• Execution: Can these investments translate into functioning mine-to-magnet supply chains by 2028, as targeted for MP Materials’ “10X Facility”?
• Environmental trade-offs: Re-permitting projects like Ambler Road may strain ecosystems vital to Indigenous and conservation communities.

Fundamental & Technical Lens (REEx Perspective)

Fundamentally, MP Materials, Energy Fuels (NYSE: UUUU), and NioCorp (NASDAQ: NB) now sit at the nexus of defense-backed industrial policy, with valuations reflecting both strategic premium and speculative fervor. Technically, MP’s 530 % year-to-date surge signals overheating; any policy reversal or project delay could trigger sharp corrections. Trilogy’s >1,000 % rally prices in perfection — far ahead of feasibility or revenue.

Objective Assessment

The Oilprice.com report is broadly accurate: the Trump administration is indeed weaponizing investment capital to reshore critical minerals. Yet, the long-term success of this approach depends less on stock-market fireworks than on whether these public-private hybrids can deliver cost-competitive materials. Without midstream processing and magnet manufacturing built domestically, the U.S. risks owning stakes in miners that still ship their concentrates offshore — merely moving dependence from Beijing to Bay Street.

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