US, Jan 29 : The Trump administration is reportedly moving away from plans to guarantee minimum prices for U.S. critical minerals projects, citing a lack of congressional funding and the challenges of setting market pricing, multiple sources told Reuters.
The potential shift follows a review by a Senate committee of a price floor extended last year to MP Materials. While the government had previously suggested such support might be extended to other projects, officials now appear to be signalling that future ventures will need to demonstrate financial independence without federal price guarantees.
At a recent closed-door meeting with minerals executives, Audrey Robertson, assistant secretary at the Department of Energy, and Joshua Kroon, deputy assistant secretary at the Department of Commerce, told attendees that Washington would not provide price floors going forward. “We’re not here to prop you guys up,” Robertson reportedly said.
The move has sparked market reactions. Shares of Australian listed rare earth companies, including Lynas Rare Earths, fell sharply following the report, though analysts cautioned that the decline was overblown. Industry observers noted the U.S. is still pursuing other support mechanisms, including equity investments, stockpiling, deregulation and targeted incentives to strengthen the domestic critical minerals supply chain.
The MP Materials deal remains unaffected. The company stated that there has been no change to its contract or government obligations, calling recent reports suggesting otherwise “false and misleading.” Legal experts have also pointed out that congressional authorization would be required for any additional price floor commitments, highlighting the limits of executive authority.
The administration’s reassessment contrasts with earlier indications that price floors could be extended to other projects. Since the MP Materials investment, Washington has taken equity stakes in companies such as Lithium Americas, Trilogy Metals, and USA Rare Earth without offering price guarantees.
Industry advocates have long argued that price floors are necessary to help U.S. producers compete with China’s state-backed miners, which can manipulate prices to challenge rivals. Critics, however, warn that such guarantees could expose taxpayers to substantial financial risk and may run afoul of trade and procurement laws.
Moving forward, Washington may explore alternative tools to support critical mineral production, including equity stakes, local content requirements, and strategic stockpiling, rather than relying on guaranteed price floors.