USA Rare Earth (Nasdaq: USAR) saw its shares jump 10% in premarket trading on Friday following comments from newly appointed CEO Barbara Humpton regarding discussions with the White House.
In an interview with CNBC, Humpton confirmed that the company is in close communication with the Trump administration about potential collaborations in the rare earth sector.
“We are in close communication with the administration,” Humpton told CNBC’s Morgan Brennan when asked whether USA Rare Earth was interested in a deal with the Trump administration.
“This is a field where it will not be a zero-sum game,” Humpton said of the rare earth supply chain. “It’s going to take a lot of players to build out this marketplace.”
Rare earth metals are critical for producing high-performance magnets used in electric vehicles, wind turbines, and defense systems, making the sector strategically important amid growing US-China competition.
Earlier this week, the administration acquired a 5% stake in Lithium Americas (LAC) and a similar stake in its Thacker Pass joint venture with General Motors, which is projected to become the largest lithium source in the Western Hemisphere.
MP Materials also finalized a multibillion-dollar agreement with the US government to expand rare earth magnet production, with the Department of Defense becoming its largest shareholder.
Expanding domestic production amid US-China tensions
The surge in USAR shares comes as the Trump administration continues to push for domestic rare earth production.
In March, President Trump invoked emergency powers to accelerate domestic output of critical minerals, aiming to reduce US dependence on China, which currently dominates about 85% of global rare earth processing.
Humpton expressed support for these moves while clarifying that USA Rare Earth is keeping the administration informed of its own plans.
The company’s focus on building a fully integrated domestic supply chain positions it as a potential key partner in US efforts to challenge China’s near-monopoly in the sector.
Mine-to-magnet strategy taking shape
USA Rare Earth is developing a mine in Sierra Blanca, Texas, and a magnet production facility in Stillwater, Oklahoma, which is expected to begin operations in the first half of 2026.
The company recently appointed Humpton, formerly a Siemens executive, as CEO and announced a $217 million acquisition of Less Common Metals (LCM), the world’s largest producer of rare earth metals and alloys outside China.
The acquisition will allow USA Rare Earth to process recycled materials, creating a closed-loop system that reuses manufacturing waste and end-of-life magnets.
Humpton said the deal accelerates the company’s mine-to-magnet strategy, creating an end-to-end domestic supply chain and strengthening US independence in rare earth production.
Market performance and outlook
Shares of USAR have surged nearly 98% this year, bringing the company’s market capitalization to around $2.59 billion.
Analysts note that the combination of government support, strategic acquisitions, and integrated production capabilities could make USA Rare Earth a central player in the domestic rare earth sector.
As US policymakers continue to prioritize rare earths for strategic industries, companies like USA Rare Earth are likely to see increased visibility, investment, and partnership opportunities, potentially reshaping the global rare earth landscape.
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