U. S. Changes Course on Critical Minerals Price Support

The U. S. government is changing its approach to critical minerals. It is no longer planning to set minimum prices for these important resources. This shift comes after realizing that Congress did not approve the necessary funds and that setting prices is a complex task. Key officials from the Trump administration recently met with industry leaders. They made it clear that projects must stand on their own financially. This is a big change from earlier promises of support. The administration had previously suggested that price floors would be available for other projects, but this is no longer the case. The U. S. is now focusing on other ways to support the mineral sector. These include investing in companies, stockpiling resources, and setting local content rules. This approach avoids the risks and legal challenges of price floors. Critics had warned that price floors could lead to long-term financial burdens for taxpayers.The shift in policy has raised questions about the government's commitment to the sector. Some companies had pushed for price floors to compete with China. Chinese producers often use state support to lower prices and undercut competitors. However, the administration insists it will continue to support the sector through other means. One notable case is the investment in MP Materials. This deal included a price floor, but it sparked concerns about funding and legal issues. Since then, the market has changed, and similar support has not been offered to other companies. The administration is now more cautious about its involvement in setting mineral prices.