Shares of Trilogy Metals surged more than 220% in premarket trading Tuesday after the US government announced a 10% stake in the Canadian minerals explorer, marking a significant move in Washington’s efforts to secure domestic sources of critical minerals.
The White House said late Monday it will invest $35.6 million in Trilogy Metals to support exploration and development in Alaska’s Ambler mining district, a region believed to contain some of the world’s richest deposits of copper, cobalt, zinc, and lead.
By 12:40 p.m. London time (7:40 a.m. ET), Trilogy’s stock was up 222% in premarket deals.
The investment makes the US government a 10% shareholder in Trilogy Metals, reflecting a broader federal strategy to reduce reliance on foreign supply chains dominated by China, which currently controls nearly 70% of rare earth production and 90% of global processing capacity.
The decision follows former President Donald Trump’s directive to reverse restrictions imposed under the Biden administration on the Ambler Road project a proposed 211 mile industrial road in northwest Alaska designed to connect mining operations with transportation networks.
Trilogy Metals welcomed the move, calling it “a renewed federal commitment to responsible resource development” in Alaska. The company said the Ambler mining district is “home to some of the world’s richest known copper dominant polymetallic deposits.”
However, environmental groups and local communities remain divided. Critics argue the road could disrupt fragile ecosystems and Indigenous subsistence lands.
Analysts say the US stake in Trilogy Metals underscores Washington’s determination to diversify critical mineral sources amid growing geopolitical tensions.
“This investment is as much about national security as it is about economic development,” said Dr. Elaine Porter, a mineral economist at the University of Alaska Fairbanks.
The US has long recognized its vulnerability in critical mineral supply chains. Taking an equity stake is a clear sign of strategic intent.
James Harlan, senior analyst at Mineral Strategy Partners, said the move reflects a shift toward public private partnerships in securing raw materials for clean energy technologies, defense, and manufacturing.
“Copper and cobalt are essential for electric grids, batteries, and military equipment,” Harlan said. “The Ambler district could become a cornerstone of America’s resource independence if developed responsibly.”
Global demand for critical minerals is expected to quadruple by 2040, according to the International Energy Agency, driven by surging production of electric vehicles, renewable energy systems, and advanced defense technologies.
Currently, China produces 70% of the world’s rare earth minerals and handles nearly 90% of processing, giving it a strategic edge over Western economies.
By comparison, US domestic production of copper and other critical minerals remains limited. Projects like Ambler could help close that gap, though analysts caution that development timelines and regulatory approvals could delay production for years.
Reactions in Alaska have been mixed. Mary Atqasuk, a local leader from the Kobuk River region, said the project could bring jobs and infrastructure to remote communities. “Our youth need opportunities,” she said. “If this is done with respect for our land, it could mean education, employment, and new hope.”
But others remain skeptical. “This road threatens the heart of our traditional hunting grounds,” said Nathan Iyatok, a member of the local Inupiat community. “We’ve seen promises before, but the land pays the price.”
Environmental groups such as the Alaska Conservation Alliance have called for stricter safeguards, arguing the Ambler Road could cut through sensitive wilderness and harm wildlife migration patterns.
The White House emphasized that all development would follow federal environmental standards and consultation with local communities. Officials said the goal is to balance economic opportunity with ecological responsibility.
Experts believe the investment signals a broader policy trend. “This is not just about Trilogy,” said Porter, the mineral economist. “We’ll likely see similar stakes or strategic partnerships across North America as the US moves to secure raw materials for its energy transition.”
Still, hurdles remain. The Ambler Road project must navigate environmental reviews, legal challenges, and funding constraints before construction begins.
If completed, the project could position Alaska as a key hub in the US critical minerals strategy, supporting sectors from clean energy to national defense.
The US government’s 10% stake in Trilogy Metals represents a major step toward strengthening domestic critical mineral supply chains and reducing dependence on foreign processing, particularly from China.
While the move sparked a 222% surge in Trilogy’s shares, it also revived longstanding debates over resource development in Alaska’s wilderness.
Whether the Ambler Road project becomes a symbol of energy independence or a flashpoint for environmental controversy will depend on how policymakers, industry, and local communities navigate the challenges ahead.