USA Rare Earth shares experienced a 10% increase in premarket trading following news of ongoing negotiations with the White House. CEO Barbara Humpton discussed the company’s interests during an interview with CNBC. No comments were immediately available from the company following this report.
White House Negotiations and U.S. Mineral Production
These discussions come amid efforts by the Trump administration to enhance domestic production of critical minerals. In March, President Trump invoked emergency powers to combat China’s dominance in the rare earth sector. This push for self-sufficiency in critical materials is part of a broader strategy to address supply chain vulnerabilities.
Recent Developments in the Sector
Earlier this week, the U.S. government acquired a 5% stake in Lithium Americas, along with a similar stake in the Thacker Pass joint venture with General Motors. This site is projected to be a significant lithium source in the Western Hemisphere. Additionally, MP Materials has partnered with the U.S. government on a multi-billion dollar project to increase rare earth magnet production.
The Importance of Rare Earth Elements
Rare earth elements consist of 17 metals essential for creating magnets that convert power into motion. Recent restrictions from China on exports highlighted the need for enhanced domestic capabilities and production.
Future Prospects for USA Rare Earth
USA Rare Earth is actively developing a mining operation in Sierra Blanca, Texas, along with a neo magnet manufacturing facility in Stillwater, Oklahoma. This facility is expected to commence operations in the first half of 2026. The company’s shares have surged by nearly 97.8% this year, bringing its market capitalization to approximately $2.59 billion.
- Company: USA Rare Earth
- Share Increase: 10% in premarket trading
- CEO: Barbara Humpton
- Recent Stake Purchases: 5% in Lithium Americas and partnership with GM
- Market Cap: $2.59 billion
- Mine Location: Sierra Blanca, Texas
- Facility Location: Stillwater, Oklahoma (operational by 2026)
