Trump Administration Withdraws Critical Mineral Price Floor Guarantees

The United States Government is stepping back from plans to guarantee minimum price floors for domestic critical minerals projects. During a closed-door meeting in Washington, senior officials informed minerals executives that projects must prove financial independence without government price support, citing a lack of congressional funding and the volatility of commodities like lithium, cobalt, and rare earth elements.

While the administration is moving away from individual company negotiations, officials indicated it may instead utilize Section 232 tariffs to impose market-wide floors on certain minerals. The White House stated it will continue to pursue tax cuts, deregulation, and targeted investments in the sector. The news triggered a decline in shares for several U.S. and Australian mining companies, including Lynas Rare Earths.

Both the U.S. Department of Energy and MP Materials denied the reports. MP Materials asserted that its existing price-floor contract remains unchanged, though the United States Senate Committee on Armed Services has questioned the authorization and strategy behind that specific investment.