USA Rare Earth shares surge 24.25% after-hours as LCM subsidiary secures rare-earth supply deal with Solvay and Arnold, strengthening ex-China supply chains.

USA Rare Earth surged 24.25% in after-hours trading following the announcement that its subsidiary, Less Common Metals (LCM), signed a supply agreement with Solvay and Arnold Magnetic Technologies (a Compass Diversified subsidiary) to provide rare-earth materials for advanced permanent magnets. The deal, disclosed during the trading session, strengthens U.S. and European supply chains for critical industries like aerospace, defense, and energy, aligning with the company’s strategy to establish a domestic rare-earth ecosystem. The partnership marks a key step in commercializing LCM’s capabilities post-acquisition in November 2025, with LCM also supplying feedstock for USA Rare Earth’s upcoming Stillwater magnet facility. The agreement’s emphasis on ex-China sourcing and long-term stability for rare-earth markets fueled investor optimism, directly correlating with the sharp post-announcement price rise.