USA Rare Earth experienced a significant rise in share price on Friday, with CEO Barbara Hampton revealing ongoing discussions with the Trump administration regarding potential government support.
The company’s stock soared to $32.45, marking an increase of over 18%, which brings its market valuation to approximately $25.9 billion. Remarkably, the share price has more than doubled since the beginning of the year.
During an interview on CNBC, Hampton mentioned the company is in “close communication” with the White House regarding deals. However, USA Rare Earth hasn’t responded to inquiries for additional details.
These comments came shortly after the White House revealed a 5% stake in Lithium America and its joint venture with General Motors. Additionally, the Department of Defense became the largest stakeholder in MP Materials in July, following efforts to expand rare earth magnet production significantly.
USA Rare Earth has not confirmed its own pursuits for federal investment. This conversation about boosting domestic production of critical minerals gained urgency after President Trump declared an emergency in March, triggered by China halting rare earth exports amid a trade conflict. Although Beijing lifted some restrictions in June, the situation has underscored the United States’ reliance on Chinese supply.
Rare earth elements, crucial for technologies like electric vehicles and smartphones, are largely controlled by Chinese manufacturers. Hampton commented on this competitive landscape, saying, “This is a field that doesn’t become a zero-sum game. It takes a lot of players to build this market.”
USA Rare Earth is working on mining rare earth materials in Sierra Blanca, Texas, and has a magnetic plant in Stillwater, Oklahoma. The company is recognized as a leading U.S. manufacturer of Magnets known as “Neo Magnets,” which is viewed as a key part of expanding the country’s mineral production capacity.
Analyst Subash Chandra from benchmark company highlights that while government investment could take various forms, there still seems to be a lack of a cohesive “mine-to-magnetic” strategy. The administration views investments in Lithium America and MP Materials as strategic moves to bolster supply chains and reduce dependence on Beijing’s control over this vital sector.
