Why TMC the Metals Company Stock Is Soaring Today
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S of TMC the Metals Company (TMC 8. 93%) are jumping on Thursday, up 8. 6% as of 2:46 p. The rise comes as the S&P 500 (^GSPC 0. 27%)...
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July 10, 2025
03:10 PM
The Motley Fool
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S of TMC the Metals Company (TMC 8. 93%) are jumping on Thursday, up 8. 6% as of 2:46 p
The rise comes as the S&P 500 (^GSPC 0. 27%) and Nasdaq Composite (^IXIC 0. 09%) gained 0. 1%, respectively
TMC's stock is getting a boost from a major deal announced this morning between the Pentagon and another mining company
The Trump administration is backing rare earths Last week, President Trump mused the possibility of the federal government in domestic rare earth mining
Is extremely dependent on foreign rare earth elements -- especially from China -- which are critical to many key defense systems
This morning, MP Materials, which owns the only operational rare earth mine in the U. , announced that the Department of Defense (DoD) is $400 million in the company
The deal will see the DoD become the largest holder, controlling nearly twice the s of CEO James Litinsky and the next-largest holder, BlackRock Advisors
Image source: Getty Images
More deals could be coming Rare earth and critical mineral mining companies across the board saw their s lifted by the news on the hope that the Trump administration would make additional deals
Although the administration hasn't explicitly stated it will, it has indicated as much
TMC could very well be the beneficiary of a similar deal
Still, this is pure speculation
There are no guarantees
There's a lot of hype behind TMC -- it is entirely pre-revenue -- and I would stay away from the stock unless you have a particularly high risk tolerance and are willing to lose your investment
However, there is a significant upside if things pan out
Johnny Rice has no position in any of the stocks mentioned
The Motley Fool recommends MP Materials
The Motley Fool has a disclosure policy.
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