Here's what we know,
USA Rare Earth CEO Barbara Humpton told CNBC Thursday that her company is in "close communication" with the White House. And investors loved it.
$USAR gained 23% during regular trading on Thursday, then climbed another 8% after hours.
This comes right after the Trump administration made a big move in rare earth space. The Pentagon took an equity stake in MP Materials, America's largest rare earth producer, and set up a price floor deal. Now everyone's asking: is the USA Rare Earth next in line?
Mine-to-Magnet Strategy
We depend on China for most of our rare earth minerals. That's a problem.
These minerals go into everything from your smartphone to fighter jets.
USA Rare Earth is building a mine in Sierra Blanca, Texas, and a magnet production facility in Stillwater, Oklahoma. That's the kind of domestic supply chain Washington wants to see.
The company's stock has surged nearly 195% over the past six months. It's nearly doubled this year. Part of that is timing. Part is strategy.
Just this week, USA Rare Earth announced it's buying LCM, a UK-based rare earth metal producer, for $100 million in cash plus 6.74 million shares. They're building out capabilities fast.
The Bigger Picture
Trump's team is clearly focused on breaking China's grip on critical minerals.
The MP Materials deal set a precedent. Under that agreement, the Pentagon set a price floor of $110 per kilogram for key magnetic materials and takes 30% of the upside when prices go higher.
That structure protects companies during price drops while giving taxpayers a cut when times are good. It's not a handout. It's a partnership.
“This is a field where it will not be a zero sum game."
The demand for rare earth magnets keeps growing with electric vehicles, wind turbines, and defense needs.
What You Should Watch Closely
We don't know what kind of deal USA Rare Earth might get, or if they'll get one at all.
But the fact that talks are happening tells you something about where this administration's priorities are.
Analysts at Canaccord Genuity just raised their price target to $22 from $21, with the stock currently trading pre-market around $24.90.
But government deals can change everything quickly.
One thing's clear: the race to build American rare earth capacity is heating up. And it's not just about mining rocks. It's about supply chains, national security, and who controls the materials that power modern technology.
The question isn't whether America needs more rare earth production. We do.
The question is which companies will get the government backing to make it happen.
Disclaimer: This is not financial advice. Do your own research and consult a qualified financial advisor before investing.
