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Shares of Canadian minerals explorer Trilogy Metals surged dramatically in premarket trading on Tuesday, following an unprecedented move by the U.S. government to invest $35.6 million in the company. The federal investment makes the United States a 10% shareholder, underscoring the strategic importance of domestic mineral resources.

At 10:03 a.m. London time (5:03 a.m. ET), Trilogy Metals shares were up approximately 180% in premarket trades, reaching a peak increase of 205%. The spike comes amid renewed federal focus on securing domestic supplies of copper and other essential minerals critical for energy, defense, and manufacturing sectors.

The White House announced the partnership on Monday, highlighting the Ambler mining district in Alaska as a rich source of copper-dominant polymetallic deposits. The federal backing also coincides with the Trump administration granting key permits for the Ambler Road project, a decision that reverses the Biden administration’s previous rejection. Trilogy Metals described the move as a reflection of “renewed federal commitment to responsible resource development in Alaska,” emphasizing the strategic role of the Ambler Road as critical infrastructure.

Trilogy Metals stated that the investment and permits will significantly strengthen domestic supply chains for copper, cobalt, zinc, and lead. These minerals are essential for modern energy infrastructure, defense technologies, and a variety of manufacturing processes. Analysts see the government’s stake as a signal of long-term support for mineral exploration and development in Alaska, potentially opening the door for further public-private partnerships.

The Ambler Road project itself remains a subject of debate. Critics warn that the 211-mile industrial road could disrupt fragile Alaskan ecosystems and negatively impact local communities and wildlife. Proponents, however, argue that the project is vital for ensuring the U.S. maintains a reliable supply of critical minerals in the face of increasing global demand and geopolitical tensions.

Trilogy Metals’ stock surge reflects both investor enthusiasm for government-backed initiatives and the growing strategic value of domestic mineral resources. As interest in critical minerals rises globally, this development positions Trilogy Metals at the forefront of a sector poised for substantial growth.