A dump truck moves raw ore inside the pit at the Mountain Pass mine, operated by MP Materials, in Mountain Pass, California, U.S., on Friday, June 7, 2019.
Joe Buglewicz | Bloomberg | Getty Images
Shares of U.S. rare earth miners surged in early trading Monday, after President Donald Trump threatened China with retaliation over its strict export controls.
USA Rare Earth and Critical Metals soared more than 30%, Energy Fuels jumped more than 20%, and MP Materials rallied about 20%.
Trump on Friday threatened China with 100% tariffs starting Nov. 1 in retaliation for Beijing imposing strict export controls on rare earth elements. The president appeared to dial down his rhetoric on Sunday, saying the situation with China will “be fine.”
JPMorgan Chase said Monday it would invest up to $10 billion in industries that are crucial to U.S. national security including critical minerals. The investments will come in the form of direct equity stakes and ventural capital, according to the bank.
“It has become painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing — all of which are essential for our national security,” JPMorgan CEO Jamie Dimon said in press release.
The Defense Department, meanwhile, is accelerating its effort to stockpile $1 billion worth of critical minerals, according to The Financial Times.
Rare earths are a subset of critical minerals that are crucial inputs in U.S. weapons platforms, robotics, electric vehicles and other applications.
Read More: Rare earth stocks surge on U.S-China trade dispute over critical minerals
