Trump Administration Expands Price Support for US Rare Earth Projects to Counter China

The Trump administration is accelerating efforts to boost U.S. production of rare earth elements, critical for electronics and defense, by expanding government-backed price support mechanisms to multiple companies beyond MP Materials. This initiative, discussed in a July 24 meeting led by trade advisor Peter Navarro and National Security Council supply chain official David Copley, aims to guarantee minimum prices for rare earth products, reducing investment risks and countering China's market dominance. The strategy echoes the pandemic-era Operation Warp Speed in its urgency, with the Pentagon having already made a $400 million equity investment in MP Materials, securing a 10-year price floor. Key technology firms such as Apple, Microsoft, and Corning participated in the discussions, underscoring the importance of stable critical mineral supplies for manufacturing. The administration's approach is designed to rapidly scale mining, processing, recycling, and magnet production in the U.S., establishing a more resilient and independent supply chain for these essential minerals.