US Defense Industry Drives Up Shares of Critical Minerals Stocks
Shares of USA Rare Earth, Critical Metals Corp, and United States Antimony Corp surge following a Pentagon announcement. The selection of REalloys to build a critical minerals processing facility on a US military base marks a strategic shift in domestic supply chain policies.
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On July 7, the US Army announced REalloys (ALOY) will construct the first commercial critical minerals processing facility on a military site, boosting stocks of USA Rare Earth (USAR), Critical Metals Corp (CRML), and United States Antimony Corp (UAMY), all rated 'Buy' by Wall Street firms. This initiative signals a shift towards reducing reliance on foreign supply chains for defense materials, with REalloys set to qualify defense-grade heavy rare earths by the end of 2026.
The critical minerals sector is expected to gain support from the government's CHIPS program, which is reviewing a $1.6 billion funding proposal. As market focus shifts to domestic production, smaller companies like UAMY are experiencing significant momentum.
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