U.S. Drops Price Guarantees for Critical Minerals Amid Market Challenges
The Trump administration has abandoned plans to introduce a minimum price guarantee for critical minerals projects in the U.S. Officials now confirm that no direct financial support will be provided to stabilise commodity prices. The decision follows months of discussions with industry leaders and internal policy reviews.
In early January 2026, Audrey Robertson, assistant to the U.S. energy secretary, met with key minerals firms—including MP Materials—in a closed session. She announced that the government would no longer pursue state-backed price guarantees for critical minerals. The shift comes after the administration faced hurdles in securing congressional funding and grappled with the complexities of setting fixed prices for volatile commodities.
The move marks a departure from earlier efforts, such as a price floor extended to MP Materials in 2025, now under review by a U.S. Senate committee. Officials acknowledged the difficulty of establishing stable pricing for materials like lithium, cobalt, and rare earth elements, which fluctuate with global market conditions. Without legislative backing, policymakers have limited tools for direct intervention.
Instead, the administration is urging the industry to focus on self-sufficiency, efficiency, and market-driven growth. Alternative strategies—such as regulatory reforms, faster permitting, and public-private partnerships—are being explored to boost domestic supply without taking on financial risks. These measures aim to support sectors like energy, defence, and technology, which rely heavily on secure mineral sources.
The situation also underscores broader challenges in a globally connected market. Unilateral national policies often struggle to influence prices set by international supply and demand. As a result, the administration is prioritising indirect support over direct price controls.
The withdrawal of price guarantees leaves U.S. minerals firms without a financial safety net. Companies must now adapt to market conditions while pursuing operational improvements. Meanwhile, the government's focus shifts to regulatory changes and partnerships to strengthen domestic supply chains.
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