Market action: Shares of US rare-earth mining companies rose Monday, led by Critical Metals, which surged as much as 43% during the session.
Critical Metals attracted attention because it owns the Tanbreez Rare Earth Project, a major rare-earth mine in southern Greenland.
Reason for the rally: On Friday, Trump announced that the US had secured an agreement with Denmark granting it permanent security control over Greenland. The agreement is expected to be formally signed next week.
Although Trump’s announcement did not address mining or natural resources, numerous rare-earth mining stocks jumped in premarket trading Monday. Among the sector’s biggest movers were:
– Critical Metals: +37%
– USA Rare Earth: +8%
– MP Materials: 4%
– TMC The Metals Company: +5%
– Ramaco Resources: +3%
Why it matters: Since returning to office, President Trump has focused heavily on strengthening the American rare-earth metals supply chain. His strategy has mainly involved taking equity positions in mining companies, including Critical Metals and USA Rare Earth.
The move comes as rare-earth shipments from China to the US decline ahead of Trump’s meeting with Chinese President Xi Jinping. The US has so far depended heavily on China’s rare-earth mining industry, a reliance Trump has repeatedly said the country needs to end.
Wall Street is now viewing the Greenland agreement as a sign that the US is moving away from dependence on China’s supply chain.