US Weighs Critical Minerals Price Floor System Amid Supply Chain Worries
The US government is working on a critical minerals price floor system to strengthen supply chains for resources vital to national security. According to Bloomberg, multiple federal agencies have developed a sophisticated framework to stabilize markets and unlock private investment.
Under Secretary of State for Economic Affairs Jacob Helberg said the proposed pricing mechanism could help stabilize markets and reduce reliance on China. He noted that the system is expected to roll out through Pax Silica, a program aimed at securing silicon-based supply chains.
The initiative follows a recent summit hosted by the US that brought together representatives from 55 countries, where the Trump administration outlined plans to introduce price floors and expand private equity participation. The US has reached agreements with the European Union, Japan, and Mexico to implement policies like price floors to address supply chain vulnerabilities.
Shares of rare earth miners such as UAMY, MP Materials (MP), USA Rare Earth Inc. (USAR), and The Metals Company (TMC) gained more than 2% in pre-market trading after the announcement.