Rare earth stocks soar after JPMorgan announces $10 billion investment plan in sector, continued expectations of US government involvement
Suppliers of the critical materials known as rare earths, at the heart of the latest trade tensions between China and the US, soared early Monday after JPMorgan announced a $10 billion plan to focus on financing and taking direct stakes in companies.
Companies such as American Battery Technology Co., United States Antimony Corp., USA Rare Earth, and Critical Metals were all posting double-digit gains before the start of trading in New York, putting them near the top of the small-cap Russell 2000 (iShares Russell 2000 ETF).
The upswing came as JPMorgan announced a new, 10-year effort to “finance and invest in industries critical to national economic security and resiliency,” including $10 billion in venture capital and direct equity investments in companies in sectors like “critical minerals.”
Rare earth stocks also jumped Friday, after President Trump reignited trade worries with a Truth Social post suggesting some traders were betting on further government involvement in the sector after Uncle Sam recently took a stake in MP Materials.
Over the weekend, a Financial Times story on rare earths was tonally consistent with that view, with an unnamed former defense official telling the pink paper, “They’re definitely looking for more, and they’re doing it in a deliberate and expansive way, and looking for new sources of different ores needed for defense products.”
The upswing came as JPMorgan announced a new, 10-year effort to “finance and invest in industries critical to national economic security and resiliency,” including $10 billion in venture capital and direct equity investments in companies in sectors like “critical minerals.”
Rare earth stocks also jumped Friday, after President Trump reignited trade worries with a Truth Social post suggesting some traders were betting on further government involvement in the sector after Uncle Sam recently took a stake in MP Materials.
Over the weekend, a Financial Times story on rare earths was tonally consistent with that view, with an unnamed former defense official telling the pink paper, “They’re definitely looking for more, and they’re doing it in a deliberate and expansive way, and looking for new sources of different ores needed for defense products.”
