Key facts
- US rare-earth mining stocks surged on Monday.
- Critical Metals, which owns the Tanbreez Rare Earth Project in Greenland, reached 43% intraday.
- USA Rare Earth rose 8%, MP Materials 4%, TMC The Metals Company 5%, and Ramaco Resources 3%.
- President Trump announced a deal granting the US permanent security control over Greenland.
- The US has been heavily reliant on China's rare-earth mining industry.
- Wall Street views the Greenland deal as an indicator of the US moving away from Chinese supply chain dependence.
US-based rare-earth mining stocks climbed on Monday, with Critical Metals reaching 43% at intraday highs, following President Trump's announcement of a deal granting the US permanent security control over Greenland. The agreement with Denmark is expected to be officially signed next week.
While Trump's announcement did not specifically mention mining or natural resources, the news spurred gains in premarket trading for several companies in the sector. Critical Metals, which owns the Tanbreez Rare Earth Project, a significant rare-earth mine in southern Greenland, saw its stock surge. Other movers included USA Rare Earth (+8%), MP Materials (4%), TMC The Metals Company (+5%), and Ramaco Resources (+3%).
President Trump has prioritized strengthening the American rare-earth metals supply chain, often through equity stakes in miners like Critical Metals and USA Rare Earth. This development comes as rare-earth shipments from China to the US are reportedly decreasing ahead of a meeting between Trump and Chinese President Xi Jinping. The US has historically depended heavily on China's rare-earth industry, a reliance Trump has vowed to change. Wall Street is interpreting the Greenland deal as a strategic move by the US to reduce its dependence on China's supply chain.