Latest News

USA Rare Earth reaches all-time high following close discussions with White House by a report miner

USA Rare Earth's shares rose more than 18% on Friday to reach a new record high, following a report that its CEO Barbara Humpton had said the company was in discussions with the White House.

In an interview on CNBC, Humpton answered a question regarding the company's interest in striking a business deal with the Trump Administration.

USA Rare Earth has not responded to our request for comment immediately.

Humpton's comments follow the Trump Administration's purchase of a 5% share in Lithium Americas, and a separate stake of 5% in General Motors' joint venture Thacker Pass with the company earlier this week.

In March, U.S. president Donald Trump invoked emergency powers to increase domestic production of vital minerals. This was part of an effort to counter China's near total control of this sector.

In March, China halted the export of rare earths - a grouping of 17 metals which are used to produce magnets that convert power into motion - as part of its trade dispute with Trump. Although there were some signs of relief in June, the broader tensions highlighted the need for increased U.S. production.

MP Materials announced a multi-billion dollar deal in July with the U.S. Government to increase production of rare earth magnets. The Defense Department became its largest shareholder.

USA Rare Earth is developing a mine at Sierra Blanca in Texas, and a manufacturing facility for neo-magnets in Stillwater in Oklahoma. Both are expected to be commercially available in the first half 2026.

Subash Chandra is an analyst at The Benchmark Company and he said that the company was one of the most important emerging neo-magnet manufacturers in America. Any reshoring plan should include this company.

Chandra stated that "we don't yet know the form in which a possible U.S. Government investment could take. But there is still a piece missing to the mines-to magnet strategy."

The company's market capitalization is now $2.59 billion, after its shares have doubled this year. (Reporting and editing by Shilpa Majumdar in Bengaluru)

(source: Reuters)