United States Antimony Corp (NYSE:UAMY) shares are plunging on Thursday. Reports surfaced that the Trump administration has scrapped plans to guarantee a minimum price for U.S. critical minerals projects.
Changes To Critical Minerals Projects
According to Reuters, the administration has decided to walk away from the proposed price‑support mechanism due to concerns over limited congressional funding and the complexity of setting and maintaining government‑backed pricing.
During a closed‑door meeting in Washington, officials reportedly told U.S. minerals executives that future projects will need to stand on their own financially without relying on federal price guarantees.
The shift marks a reversal from earlier signals that the price floor established for MP Materials Corp (NYSE:MP) last July would be part of a broader effort to support other domestic mineral producers. That agreement remains in place, but officials now say similar guarantees will not be extended elsewhere.
The move comes as the administration continues to emphasize domestic critical minerals development, highlighted by its recent $1.6 billion investment in USA Rare Earth Inc (NASDAQ:USAR). The bigger aim is to lessen America's reliance on China, which currently controls most of the world's rare earth supply, which are crucial for everything from defense systems to electronics and clean‑energy tech.
Removing the possibility of guaranteed minimum prices could make U.S. projects more difficult to finance, especially as domestic producers compete with Chinese suppliers that benefit from scale and government backing.
United States Antimony pushed back on the Reuters report, calling it "inaccurate, misleading and inconsistent with the facts." The company said its long‑term agreements with U.S. government agencies remain fully intact and emphasized that federal support for domestic antimony supply has not changed.
UAMY Stock Faces Heavy Selling Pressure
UAMY Price Action: United States Antimony shares were down 12.78% at $8.45 at the time of publication on Thursday, according to Benzinga Pro.
Image: Shutterstock
