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Trump Targets China’s Rare Earth Edge

The Trump administration is weighing the use of the Defense Production Act to funnel loans and other federal support into US rare earth mining, processing, and magnet-making, a move designed to blunt Beijing’s near-monopoly on the critical minerals supply chain.

Nevada-based MP Materials — the lone US producer — stands to gain most. Deputy Defense Secretary Steve Feinberg has been canvassing funding options for the company, and the stock surged 14-17% to an intraday high of $29.96 after news of the plan broke.

Defense Secretary Pete Hegseth told lawmakers this week that MP Materials “is a great example of a place where we can partner with industry.” Interior Secretary Doug Burgum called China’s 85% share of global processing “a wake-up call for America,” warning that the existing US stockpile is “massively insufficient.”

You can read more on the matter here.

What’s going on?

• Ted Cruz Intensifies Push to End Fed Interest Payments (theDeepDive)

• Israel attacks Iran’s nuclear facilities, kills top military leaders (Globe)

• Consumer sentiment reading rebounds to much higher level than expected as people get over tariff shock (CNBC)

• Is The US About To Have ‘First Dibs’ On Canada’s Resources? (theDeepDive)

• Ye makes surprise appearance at Sean 'Diddy' Combs trial (Reuters)

• India and Canada Reach Deal to Share Intelligence on Terrorism, Crime (FP)

• “Strength of a Lion”: Inside Israel’s Sudden Air Assault on Iran (theDeepDive)

• Conservatives seek lifetime ban for ArriveCan contractor GCStrategies (Globe)

• Poilievre Says Pipeline Projects Shouldn’t Require Consensus (theDeepDive)

• Netanyahu vows to attack Iran for ‘as long as necessary’ (FT)

What’s the latest?

• Ford: Ford Motor Co. is facing ongoing supply issues with rare earth magnets, forcing temporary factory shutdowns, including a one-week halt at its Chicago plant in May. CEO Jim Farley described the situation as "hand-to-mouth," citing day-to-day uncertainty despite China granting temporary export licenses earlier this month. China controls over 90% of global rare earth processing and recently tightened export rules, straining Western manufacturers. Ford shares slipped nearly 1% on the news, though they remain up over 7% for the year.

• JetZero: JetZero Inc. will build a $4.7 billion aircraft manufacturing plant in Greensboro, North Carolina, aiming to create over 14,500 jobs by 2036 — the largest job commitment in state history. The plant will produce the Z4, a next-gen blended-wing jet said to be 50% more fuel-efficient than traditional airliners. Backed by United Airlines, Alaska Airlines, and a U.S. Air Force grant, JetZero plans to begin hiring in 2027 and produce up to 20 planes monthly in the 2030s. State and local incentives could total $2.35 billion if milestones are met.

• Oil: Oil prices surged while U.S. stocks slipped Friday as fears of a wider Israel-Iran conflict rattled markets. Benchmark U.S. crude jumped 6.2% to $72.22 a barrel, and Brent rose 5.9% to $73.44, raising concerns about global supply disruptions. The S&P 500 fell 0.4%, the Dow dropped 403 points, and travel-related stocks sank sharply. Meanwhile, defense and energy companies gained, and gold rose 1.2% as a safe haven. Treasury yields climbed to 4.42% amid inflation fears, despite improved consumer sentiment following Trump’s tariff pause.

• Economics: Canada’s manufacturing sales fell 2.8% in April to $69.6 billion—the sharpest monthly drop since October 2023—due to U.S. tariffs targeting steel, aluminum, and autos. Petroleum and coal products (-10.9%), motor vehicles (-8.3%), and primary metals (-4.4%) led the decline. Wholesale sales also dropped 2.3%, with motor vehicle parts most affected. Ontario saw the largest tariff-related hit as auto plants slowed production. StatCan warned this could signal flat or negative GDP growth for April, with formal data due June 27.

• Stock: Canada’s TSX index fell 58.48 points to 26,557.27 in late-morning trading, led by losses in the tech sector. U.S. markets also dropped sharply following Israeli strikes on Iranian targets, with the Dow down 489.64 points and the Nasdaq off 149.19. Despite market volatility, oil surged US$4 to US$70.64 per barrel, while gold rose US$44 to US$3,446.40 an ounce. The Canadian dollar edged up to 73.63 cents US.

Monument Mining Q3 Earnings

The stock market and stuff

• Dundee Precious Metals To Acquire Adriatic Metals For $1.3 Billion (theDeepDive)

• Walmart and Amazon Are Exploring Issuing Their Own Stablecoins (WSJ)

• This Is What Would Slam the Brakes on Tesla’s Robotaxi Rollout Plan (theDeepDive)

In the juniors

• Founders Metals Bumps Ownership In Antino Gold To 70% (theDeepDive)

• NexGold Mining Infill Drilling Intersects 25.79 g/t Gold Over 4.5 Metres and 18.09 g/t Gold over 3.0 Metres at the Goldboro Gold Project (JMN)

• Aznalcóllar Corruption Case Nears Conclusion | David Gower – Emerita Resources (theDeepDive)

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