MP Materials, The Metals Company Shares Are Moving Higher Monday: Here's Why

Metals and mining companies including MP Materials Corp MP and The Metals Company Inc TMC are moving sharply higher Monday morning following reports that the Trump administration plans to stockpile deep-sea metals to counter China.

What To Know: According to a Financial Times report published on Saturday, President Donald Trump is working on an executive order that would allow for the stockpiling of critical metals found in the Pacific Ocean.

People familiar with the matter said the move is focused on countering China’s rare earth supply chains and battery mineral dominance as the U.S. aims to become self-sufficient when it comes to critical minerals supply.

Alexander Gray, who was the chief of staff to the U.S. national security adviser in Trump’s first term, reportedly said the moves makes sense as China views the ocean floors as a “front line” for economic competition with the U.S.

“As the Trump administration has done with shipbuilding and critical minerals more broadly, catalysing US government focus on the areas of greatest vulnerability to PRC ambitions is essential,” Gray reportedly said.

China imposed export restrictions on some rare earth elements last week in response to reciprocal tariffs from the Trump administration. China produces around 90% of the world's refined rare earths, according to the U.S. Geological Survey.

MP Materials’ Mountain Pass facility is the only scaled rare earth production source in the U.S. The company is currently expanding its manufacturing operations downstream to provide a full supply chain solution from materials to magnetics.

The Metals Company is an explorer of lower-impact critical metals on the seafloor. The company aims to supply metals for building infrastructure, power generation, transmission and batteries.

Shares of USA Rare Earth Inc USAR and NioCorp Developments Ltd NB were also trading significantly higher at last check.

MP, TMC Price Action: At the time of publication Monday, MP Materials shares were up 21.8% at $27.45 and The Metals Company shares were up 27.9% at $2.50, according to Benzinga Pro.

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