Rare Earth Stocks Get Rocked: Here Are The Facts

The rare earth sector got a shock Wednesday evening when Reuters reported that the Trump administration is walking back previous promises to guarantee price floors for domestic critical mineral projects.

Rare earth and critical minerals stocks cratered on Thursday morning. 

• USAR stock is down. See the chart and price action here. 

The Reported Policy Change

According to the report, senior administration officials informed industry leaders at a closed-door meeting that future projects must prove “financial independence” without federal price supports. 

It is a significant reversal from the aggressive Operation Warp Speed-style rhetoric the administration used last year to bolster the domestic rare earth supply chain against Chinese dominance.

Stock Market Impact: The news triggered a steep sell-off in rare earth and critical minerals stocks:

• MP Materials Corp. (NYSE:MP) shares fell over 11% on Thursday.
• Critical Metals Corp (NASDAQ:CRML) dropped nearly 16%. 
• USA Rare Earth (NASDAQ:USAR) stock lost 14.1% of its value.
• Lithium Americas Corp. (NYSE:LAC) shed 11.6%. 
• Trilogy Metals Inc. (NYSE:TMQ) stock was down by 12%. 
• Energy Fuels, Inc. (AMEX:UUUU) fell 15%. 
• TMC the metals company Inc. (NASDAQ:TMC) shares dropped 12.5%. 
• United States Antimony Corp. (AMEX:UAMY) fell more than 16%. 

The Controversy 

The report sparked immediate backlash regarding its accuracy. 

MP Materials took to X with a series of posts, essentially calling the report “fake news.” The company clarified that its existing government contract, which includes a specific price floor of $110/kg for light rare earths, remains fully intact and legally binding.

U.S. Antimony also responded to the Reuters report, calling it “inaccurate, misleading, and inconsistent with the facts." 

Industry observers also noted a controversial post-publication edit by Reuters. The original story was criticized for implying that current deals were being walked back, while the updated version clarified that the pivot applies to future projects and potential new applicants.

CEO Sparring

The social media drama wasn’t limited to Reuters. MP Materials’ social media presence also targeted Tony Sage, CEO of Critical Metals. 

MP's account appeared to mock the speculative nature of Critical Metals as its own proven domestic operations were being punished by what the company deemed as “misleading” reporting.

The Takeaway

Rare earth stocks have seen a magnificent rally under the Trump administration's policies and push to reshore metals and minerals supply chains. 

One news report and a broadly down day in the market likely should not rattle investors too much while waiting for clarity from official policies and government guidance.

Photo: Shutterstock