USA Rare Earth (USAR) Surges 7.41% on Acquisition, New CEO, Federal Talks

Shares of USA Rare Earth (USAR) surged 7.41% on October 7, 2025, marking a fifth consecutive day of gains and pushing the stock to a 64.46% increase over the past five trading days. The price hit an intraday high of $17.48, the highest level since October 2025, driven by a confluence of strategic developments and sector-specific momentum.

A key catalyst was the $100 million acquisition of UK-based Less Common Metals (LCM), finalized on September 29. The deal, combining cash and equity, expands USAR’s capabilities in metal fabrication and magnet recycling, accelerating its “mine-to-magnet” strategy. LCM’s expertise in high-purity rare earth alloys strengthens USAR’s position as a domestic alternative to Chinese processing, a critical factor in U.S. supply chain security efforts.

Leadership changes also fueled investor optimism. Barbara Humpton, former CEO of Siemens USA, was appointed as CEO on October 1, bringing deep experience in infrastructure and defense. Her hiring coincided with a pre-market share jump, signaling confidence in her ability to navigate federal partnerships and scale operations. Humpton’s track record aligns with USAR’s focus on government-backed projects, including the Round Top mine in Texas and the Stillwater magnet plant in Oklahoma.

Speculation of federal involvement further boosted the stock. The company’s CEO confirmed ongoing discussions with the White House, echoing broader U.S. policy initiatives to reduce reliance on Chinese rare earths. USAR’s recent memorandum of understanding with Enduro Pipeline Services to supply U.S.-made magnets for energy infrastructure underscores its growing relevance in critical sectors. Meanwhile, a $125 million private equity raise in late September bolstered liquidity, with proceeds earmarked for project development and operational expansion.

Operational progress has validated USAR’s long-term vision. The Round Top mine achieved an 80% recovery rate for heavy rare earths under cost-effective leaching methods, while the Stillwater facility is on track to begin production in early 2026. These milestones, coupled with 12 offtake agreements covering 300 tons annually, highlight the company’s transition from exploration to commercialization. However, pre-revenue status and execution risks remain key challenges as the firm scales its mine-to-magnet strategy.