USA Rare Earth Shares Rise 10.2% After Report Co in Discussion With the White House

USA Rare Earth Shares Rise 10.2% After Report Co in Discussion With the White House

USA Rare Earth Inc. (USAR) saw its shares surge by 10.2% in premarket trading on Friday, following a report that the company's CEO, Barbara Humpton, was in close discussions with the White House. The news was revealed in an interview with CNBC, where Humpton addressed the company's potential interest in striking a deal with the Trump administration .

The company has been developing a mine in Sierra Blanca, Texas, and a neo magnet manufacturing facility in Stillwater, Oklahoma, with plans to go commercial by the first half of 2026. As of last close, its shares have gained 97.8% so far this year, giving the company a market capitalization of about $2.59 billion .

The White House discussions come at a time when the U.S. government is aggressively investing in critical minerals infrastructure. Earlier this week, the Trump administration took a 5% stake in Lithium Americas and a separate 5% stake in the company's Thacker Pass joint venture with General Motors, which is set to be the largest lithium source in the Western Hemisphere . MP Materials also unveiled a multibillion-dollar deal with the U.S. government in July to boost output of rare earth magnets, with the defense department becoming its largest shareholder .

Rare earths are a group of 17 metals used to make magnets that turn power into motion. China had halted exports in March as part of a trade spat with Trump, which showed some signs of easing in June even as broader tensions underscored the need for greater U.S. output .

USA Rare Earth's stock has shown remarkable year-to-date performance, with returns of approximately 97.82% compared to the S&P 500's 14.17% gain. With a current market capitalization of $2.585 billion and trading volume of over 23 million shares on Tuesday, USA Rare Earth has emerged as a focal point for investors betting on U.S. rare earth sector development amid escalating geopolitical tensions over critical mineral supplies .