USA Rare Earth shares surged 10% in premarket trading on Friday following a report that CEO Barbara Humpton said the company was in close discussions with the White House.
Humpton made the comments during a CNBC interview late Thursday in response to a question about the firm’s interest in pursuing a deal with the Trump administration.
The company did not immediately respond to a Reuters request for comment.
Government Push for Domestic Critical Minerals
President Donald Trump invoked emergency powers in March to increase U.S. production of critical minerals, seeking to reduce China’s dominance in the sector.
Earlier this week, the administration acquired a 5% stake in Lithium Americas and another 5% 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 struck a multibillion-dollar deal with the U.S. government in July to expand its rare earth magnet production, with the Department of Defense emerging as its largest shareholder.
Rare Earths Take Center Stage
Rare earth elements are a group of 17 metals essential for manufacturing magnets that convert power into motion.
China halted exports of these materials in March amid a trade dispute with the Trump administration. While tensions showed signs of easing in June, the disruption underscored the urgency of boosting domestic production.
USA Rare Earth’s Expansion Plans
USA Rare Earth has been working to develop its own supply chain. The company is building a mine in Sierra Blanca, Texas, and a neo magnet manufacturing facility in Stillwater, Oklahoma.
The Oklahoma facility is scheduled to begin commercial operations in the first half of 2026. These initiatives would position the company as a key domestic supplier at a time when the U.S. is racing to secure critical materials for electric vehicles, defense systems, and clean energy technologies.
Market Performance
As of the last close, USA Rare Earth’s shares have soared 97.8% this year, giving the company a market capitalization of roughly $2.59 billion.
This sharp rise reflects investor optimism that the firm’s strategy, combined with federal support, could transform it into a leader in the rare earths sector.
The ongoing discussions with the White House may further strengthen USA Rare Earth’s position in an industry where geopolitical tensions and supply chain security are becoming increasingly important.