These stocks are surging as JPMorgan follows Trump's lead with investments in 'critical' industries

By Steve Gelsi

JPMorgan launches $1.5 trillion initiative to boost industries deemed vital to national security, after the Trump administration took stakes in rare-earth, lithium and chip companies

Lithium extraction at the Salar de Olaroz salt flat in Argentina. JPMorgan Chase is backing efforts to reshore U.S. production of strategically important minerals and other national-security-linked materials.

Rare-earth and lithium stocks rallied Monday after JPMorgan Chase & Co. announced a $1.5 trillion initiative to finance and invest in industries it believes are "critical to national economic security and resiliency."

The banking giant said it would hire more bankers and direct $10 billion from its own balance sheet to select and invest in companies, primarily in the U.S., to and accelerate manufacturing and spur innovation.

JPMorgan Chase's investment- banking and lending businesses will pitch in along with its wealth-management arm, which may tap its clients to co-invest with the bank's balance sheet in various businesses.

The bank is also creating an external advisory council of "experienced leaders from the public and private sectors" to guide the long-term strategy of the 10-year effort, which it's calling the Security and Resiliency Initiative,

JPMorgan Chase's (JPM) move essentially backs a commitment by the Trump administration to boost U.S. production of rare earths currently imported chiefly from China, as well as other industries that it had deemed vital to national security.

JPMorgan is already working with the Trump administration on financing plans for the government's investment in MP Materials Corp. (MP), a domestic producer of rare earths.

See: MP Materials won a big rare-earth contract with Uncle Sam, and the stock rockets.

Also read: Why rare-earth stocks are rallying as China gears up for Trump meeting on trade

The bank's overall effort will include infrastructure, supply chains and policies that promote growth in industries that include quantum computing, artificial intelligence, defense, battery storage and robotics. In some cases JPMorgan will provide financing, and in others it may invest capital.

The bank said it would have backed $1 trillion in loans toward this effort in its normal course of business, but it's now adding another $500 billion in loan activity to unlock other opportunities to boost national security, according to a source familiar with the bank.

USA Rare Earth Inc.'s stock (USAR) soared 20.6% in afternoon trades, MP Materials Corp.'s stock (MP) rallied 24% and Lithium Americas Corp.'s stock (LAC) was up 11.4%. Lithium producer Albermarle Corp. (ALB) moved up by 7.9% and Ramaco Resources Inc. (METC) advanced by 11.2%.

Among quantum-computing companies, shares of IonQ Inc. (IONQ) rose 18.4%, Rigetti Computing Inc. shares (RGTI) moved up by 21% and D-Wave Quantum Inc.'s stock (QBTS) rose 23.1%.

The rallies came as the S&P 500 index SPX rose 1.65%.

The Trump administration has recently moved to take stakes in MP Materials and Lithium Americas, as well as in Intel Corp. (INTC). Intel's stock was up 2%.

JPMorgan Chief Executive Jamie Dimon said the U.S. is "too reliant on unreliable sources of critical minerals, products and manufacturing" which are critical for national security.

The U.S. should also address "excessive regulations" that stand in the way of investment, as well as "partisan gridlock and an education system not aligned to the skills we need," Dimon said.

While the bank's $10 billion investment, hiring of more bankers, and its beefed up research stand out as fresh developments, it's still executing the initiative within its existing banking framework, without rolling out a major new department or business unit.

-Steve Gelsi

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10-13-25 1425ET