Shares of USA Rare Earth climbed sharply Friday after its chief executive said the company was engaged in "close discussions" with the White House, fueling expectations of a potential supply deal under the Trump administration's critical minerals strategy.
The stock rose 10% in premarket trading, building on a nearly 98% gain since the start of the year, according to Reuters. Chief executive Barbara Humpton made the comments during an interview with CNBC late Thursday, when asked about the company's interest in working with the administration on domestic mineral production. USA Rare Earth has not yet issued a formal statement on the report.
The Trump administration has intensified efforts to reduce U.S. dependence on China for rare earths and other strategic minerals. President Trump invoked emergency powers in March to ramp up domestic production, citing Beijing's near-total control of the sector. Earlier this week, the administration confirmed it had taken a 5% stake in Lithium Americas and a 5% stake in the Thacker Pass lithium project being developed with General Motors, which is expected to be the largest lithium source in the Western Hemisphere.
Other U.S. producers have also been drawn into government-backed deals. In July, MP Materials announced a multibillion-dollar partnership with the Department of Defense, which became its largest shareholder, to expand magnet production.
USA Rare Earth is advancing two major projects of its own: a rare earths mine in Sierra Blanca, Texas, and a neodymium magnet manufacturing facility in Stillwater, Oklahoma, slated to begin commercial operations in the first half of 2026.
Rare earth elements, a group of 17 metals essential for making high-strength magnets used in everything from electric vehicles to fighter jets, remain a geopolitical flashpoint. China temporarily halted exports earlier this year during a trade standoff with Washington, highlighting U.S. vulnerabilities in the supply chain.
With tensions still lingering, analysts say USA Rare Earth's talks with the White House could position the company as a key supplier in the government's push for mineral independence. As of Thursday's close, the miner's market capitalization stood at about US$2.59 billion.
