Key Stats for USA Rare Earth Stock
- YTD Price Change for $USAR stock: 213%
- Current Share Price: $39
- 52-Week High: $44
- $USAR Stock Price Target: $19
What Happened?
USA Rare Earth (USAR) stock jumped over 18% yesterday after CEO Barbara Humpton confirmed the company is in “close communication” with the White House about potential government support.
The stock hit a fresh record high and has more than tripled in 2025, as investors bet the rare earth miner could be next in line for federal backing.
Humpton’s comments follow a pattern of Trump administration investments in critical mineral companies.
Last week, the government took a 5% stake in Lithium Americas, while a few months ago, the Defense Department secured a 15% stake in MP Materials along with a multibillion-dollar deal to boost rare earth magnet production.
President Trump has made domestic rare earth production a national priority after invoking emergency powers in March to boost the output of critical minerals.
The urgency escalated when China halted rare earth exports that same month as part of escalating trade tensions.
While some restrictions have eased, the episode exposed America’s dangerous dependence on Chinese supply chains.
Trump reinforced this message Friday by threatening China with 100% tariffs over its export controls on rare earths, a group of 17 metals essential for making magnets that power everything from electric vehicles to defense systems.
The entire rare earth sector rallied on the news, with USA Rare Earth leading the pack. Adding fuel to the fire, JPMorgan Chase also announced it would invest up to $10 billion in industries crucial to U.S. national security, including critical minerals. CEO Jamie Dimon said it’s “painfully clear” that America has become too reliant on unreliable sources.
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What the Market Is Telling Us About USAR Stock
The market’s enthusiastic response to USAR stock reflects growing investor conviction that USA Rare Earth will secure meaningful government support.
The company checks all the boxes Washington is looking for: domestic mine development in Texas, magnet manufacturing in Oklahoma, and plans to commission production in the first half of 2026.
Critically, USA Rare Earth focuses on heavy rare earths like terbium and dysprosium, the expensive, high-performance materials that China dominates.
It also owns a deposit with gallium and beryllium, essential for semiconductors and nuclear power. These are precisely the strategic materials the Defense Department wants secured domestically.
Analyst Subash Chandra from The Benchmark Company noted that USA Rare Earth is “one of the more significant emerging U.S. neo magnet manufacturers and any reshoring strategy should include them.”
With shares more than tripling year-to-date and the stock now commanding a $3.7 billion market cap, investors are pricing in a high probability of government support. Humpton made clear this isn’t winner-take-all, saying “it’s going to take a lot of players to build out this marketplace.”
The Defense Department is accelerating efforts to stockpile $1 billion in critical minerals, and the administration has shown it’s willing to take equity stakes and provide loans to secure domestic supply chains. USA Rare Earth appears to be next in line.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
