Trump could invest in these miners after MP Materials, Lithium Americas

The Trump administration needs to strike multiple deals with U.S. miners to secure the nation’s supply chain against China, said Mark Chalmers, CEO of Energy Fuels, a miner focused on uranium and rare earth minerals.

The Pentagon decision to take an equity stake in MP Materials, the largest U.S. rare earth miner, in July and support the company with a price floor surprised many in the industry, Chalmers told CNBC.

But it was a necessary step that the White House should now follow with more deals to diversify the U.S. supply chain and reduce the risk that would come with backing a single national champion, the CEO said.

“One company doesn’t fix it,” Chalmers said of the MP Materials deal. “You have to have multiple deals to ensure that you don’t just have the company risk, because all companies aren’t going to deliver.”

The White House is “not ruling out other deals with equity stakes or price floors as we did with MP Materials, but that doesn’t mean every initiative we take would be in the shape of the MP deal,” a Trump administration official told CNBC.

Rare earths are key inputs in weapons platforms such as the F-35 warplane as well as consumer products like electric vehicles and smartphones. The U.S. is almost entirely dependent on China, which supplied 70% of rare earth imports in 2023, according to the U.S. Geological Survey. 

China has manipulated the market by suppressing prices to drive Western competition from the market, said Ryan Castilloux, founder of Adamas Intelligence, a critical mineral market research firm. The MP deal demonstrated that the U.S. is willing to break with free market ideals and push back against China by mimicking its model of strategic capitalism when necessary, Castilloux said.

“We’ve seen just how disadvantaged the free market view is versus a long term, industrial policy driven market — and something needed to give,” Castilloux, an expert on critical minerals, told CNBC.

Possible rare earth targets

Energy Fuels’ stock has surged nearly 200% since the MP deal on July 10, as investors speculate that it could be a deal target for the Trump administration. Critical mineral miner NioCorp Developments is also up almost 200%, Ramaco Resources has gained 140%, and USA Rare Earth is up more than 70%.

MP Materials will likely need more heavy rare earths as it develops a second facility to make magnets under the Defense Department deal, Castilloux said. Heavy rare earths are needed to produce magnets that can withstand high temperatures in EV motors and defense industry applications, he said.

Headquartered in Denver, Energy Fuels is the largest uranium miner in the U.S. and is forming a rare earth operation through mines it has acquired around the world. Its operation will produce heavy rare earths, Chalmers said.

Energy Fuels is focused on “providing a product that is attractive to the U.S government” and complements the strengths of MP Materials, the CEO said.

“The government cannot bet on one horse — it just doesn’t make…