MW Trump targets rare earths, says Ukraine deal will happen 'very shortly'. This stock is getting a boost.

By James Rogers

Trump's executive order says ramping up domestic mineral production is 'imperative' for U.S. national security

President Donald Trump signed an executive order late Wednesday that he said will "dramatically increase" U.S. production of critical minerals and rare-earth elements. He also said that a rare-earths deal with Ukraine is imminent.

The executive order says it is "imperative" for U.S. national security that the country take "immediate action to facilitate domestic mineral production to the maximum possible extent."

Rare-earth elements are used in a range of technologies such as smartphones, LED lights and electric-vehicle motors. China holds most of the world's rare-earth reserves.

The executive order marks the latest chapter in the Trump administration's push to tap into mineral wealth. During his address to a joint session of Congress earlier this month, Trump vowed to boost U.S. production of critical minerals and rare-earth elements.

Related: Zelensky says Ukraine still 'ready' for minerals deal with U.S. after Oval Office blowup with Trump

A number of stocks are moving on the news of the executive order. Shares of NioCorp Developments Ltd. (NB), which is developing a critical-minerals project in southeastern Nebraska, is up 4%. Texas-based rare-earths specialist MP Materials Corp. (MP) rose in premarket trading but pulled back at the open and is down 3%.

Some 17 different elements are classified as rare-earth elements, or REEs. The total worldwide reserves of rare earths amounts to approximately 90 million metric tons, according to estimates cited by Statista. Most of the reserves are located in China, which has an estimated 44 million metric tons, although the U.S. also has significant reserves, estimated at 1.9 million metric tons, according to Statista. However, rare-earths mining can be a difficult business. In 2015, for example, Colorado-based mining company Molycorp Inc. filed for bankruptcy protection amid falling prices for rare earths.

The U.S. has been regarded as a "high-cost jurisdiction" for rare-earths mining as a result of its regulatory environment. The executive order appeared to address this issue, slamming "overbearing Federal regulation" for eroding U.S. mineral production.

"It is imperative for our national security that the United States take immediate action to facilitate domestic mineral production to the maximum possible extent," it said.

Trump also provided an update on his administration's efforts to tap into Ukraine's natural resources as he attempts to broker peace in the country's war with Russia.

"It's a big thing in this country, and as you know, we're also signing agreements in various locations to unlock rare earths and minerals and lots of other things all over the world, but in particular Ukraine," he said. "We're doing very well with regard to Ukraine and Russia and one of the things we are doing is signing a deal very shortly with respect to rare earths with Ukraine."

Related: These stocks are getting a boost from latest twist in Trump's plan to tap mineral wealth

Trump added: "They have tremendous value in rare earth and we appreciate that. We spoke yesterday with, as you know, [Russian] President [Vladimir] Putin and [Ukrainian] President [Volodymyr] Zelensky, and we would love to see that come to an end and I think we're doing pretty well in that regard. So hopefully we could save thousands of people a week from dying."

Last month Trump and Vice President J.D. Vance clashed with Zelensky in an explosive White House meeting, followed by a war of words between the two presidents. However, Zelensky subsequently said that Ukraine is still "ready" for the minerals deal.

Myra P. Saefong contributed.

-James Rogers

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

March 21, 2025 10:39 ET (14:39 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.