Trump administration invests in another US rare earth miner to loosen China’s grip on supply

The U.S. is taking a minority stake in an Oklahoma rare earth miner, the latest government investment in the sector as it seeks to minimize its reliance on imports of a material used prevalently in smartphones, robotics, electric vehicles and many other high tech products.

China processes more than 90% of the world’s critical minerals and has used its dominance in the market to gain leverage in the trade war with Washington.  USA Rare Earth said Monday that the U.S. Commerce Department is investing $1.6 billion in the company to advance work on a mine in Texas and to build a magnet manufacturing facility in Oklahoma.

Shares of USA Rare Earth jumped more than 13% before U.S. markets opened.

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