Peabody Energy Leads U.S. Coal Rally After Trump Pledges Boost for Industry

Peabody Energy Corp (NYSE:BTU) surged nearly 5% in aftermarket trading Monday, leading a rally in U.S. coal stocks after President Donald Trump vowed to ramp up coal production. Warrior Met Coal Inc (NYSE:HCC), SunCoke Energy Inc (NYSE:SXC), and Core Natural Resources Inc (NYSE:CEIX) also saw gains of up to 2%.

Trump announced on social media that he had authorized his administration to “immediately begin producing energy with beautiful, clean coal.” He blamed environmental regulations for crippling the coal industry, allowing other countries to advance by expanding coal power. However, he did not specify exact measures for increasing coal production.

The statement aligns with Trump’s broader push to deregulate the energy sector. Since taking office, he has signed an executive order to boost U.S. energy dominance and pledged to roll back restrictions on the oil industry. Last week, the Environmental Protection Agency signaled plans to revise emissions standards set by the Biden administration, easing limits on coal producers.

Coal’s role in U.S. power generation has sharply declined over the past three decades, dropping from 52.8% in 1997 to 19.7% in 2022. Mine and plant closures led to several bankruptcies, as cheaper and cleaner alternatives like natural gas and renewables gained traction.

Despite this decline, coal remains a crucial energy source globally, particularly in emerging markets like China and India. Trump’s push to revive the industry could signal a policy shift favoring traditional energy sources over renewables.

Investors reacted swiftly to the news, boosting coal stocks amid hopes for regulatory relief and increased demand. However, the long-term impact remains uncertain as global energy trends continue shifting toward sustainability.