The policy shift will shape future deals, but does not change the agreed price floor for MP Materials (NYSE:MP) set last July. It marks a reversal from earlier assurances by officials, who had indicated the MP Materials price floor was not a one-time measure and that broader price supports were being developed for other mineral projects.

This development comes in the wake of the Trump administration’s renewed focus on domestic critical minerals, as seen in its latest investment of $1.6 billion in USA Rare Earth Inc. (NASDAQ:USAR). The move aims to reduce reliance on China, which dominates global supplies of key rare earth elements used in defense systems, electronics, and clean energy technologies.

In July, MP Materials announced a public-private partnership with the U.S. Department of War, wherein the department would invest $400 million in preferred shares, with conversion and warrant options, while MP would receive $1 billion in financing to build and develop its second U.S. magnet plant. The administration announced similar deals with Lithium Americas Corp. (NYSE:LAC) and Trilogy Metals Inc. (NYSE:TMQ).