ZINGER KEY POINTS

• President Donald Trump is reportedly drafting an executive order to allow for the stockpiling of critical metals found on ocean floors.

• The move comes as China halts exports of several rare earth minerals and magnets in response to reciprocal tariffs.

USA Rare Earth Inc shares are seeing continued momentum Tuesday after metals and mining companies surged on Monday following reports the Trump administration plans to stockpile deep-sea metals to counter China.

What To Know: President Donald Trump is in the process of drafting an executive order that would allow for the stockpiling of critical metals found in the Pacific Ocean, according to a Financial Times report released over the weekend.

The move is focused on countering China's rare earth supply chains and battery mineral dominance as the U.S. aims to become self-sufficient when it comes to critical minerals supply, people familiar with the matter reportedly said.

Alexander Gray, who was the chief of staff to the U.S. national security adviser in Trump's first term, told FT that China views the ocean floors as a "front line" for economic competition with the U.S.

The move comes as China has halted exports of several rare earth minerals and magnets in response to reciprocal tariffs from the Trump administration. China produces around 90% of the world’s refined rare earths, according to the U.S. Geological Survey.

USA Rare Earth is currently focused on building “one of the largest” rare earth magnet manufacturing facilities in the U.S. in an effort to become a leading supplier of high-value rare earth magnets and critical minerals, according to the company’s website.

USA Rare Earth went public via a merger with special purpose acquisition company (SPAC) Inflection Point Acquisition Corp. II last month.  

“The recent news on tariffs and rising global geopolitical tensions are a wake-up call for America – we must build a domestic rare earth mineral and magnet supply chain here at home to support a wide range of critical technologies, including our national defense,” CEO Joshua Ballard said last month.

It’s worth noting that USA Rare Earth stock has been popular among retail investors in recent weeks. The pre-revenue company is seeing increased mentions across social platforms like X and Reddit and was among the top trending tickers on Stocktwits at last check.