USA Rare Earth (USAR) Stock Soars as Trump Administration Invests $1.6B for 10% Stake

TLDR

• USA Rare Earth stock surged 62% in premarket trading on Trump administration investment news
• Government taking 10% ownership through $1.6 billion investment, becoming top shareholder
• Deal includes 16.1 million shares and warrants for 17.6 million more at $17.17 each
• Company developing Texas mine set for 2028 and Oklahoma magnet facility launching this year
• Investment part of broader government push into critical minerals sector

USA Rare Earth stock rocketed 62% in premarket hours Monday after the Trump administration announced a $1.6 billion investment package. The deal makes Washington the company’s largest public shareholder with a 10% stake.

The government will receive 16.1 million shares in the Oklahoma-based miner. The package also includes warrants for another 17.6 million shares. Both are priced at $17.17 per share, matching recent trading levels.

A $1 billion private investment accompanies the government funding. USA Rare Earth plans to reveal complete details during a Monday morning investor conference call.

USA Rare Earth Inc, USAR

The stock was last trading up 38.5% before the opening bell. Shares have already gained over 100% this month alone.

Expanding Domestic Mining Operations

USA Rare Earth is developing a mine in Sierra Blanca, Texas, alongside Texas Mineral Resources. The facility is expected to begin operations by 2028.

The company also runs a magnet manufacturing plant in Stillwater, Oklahoma. This facility is scheduled to start production later in 2026.

Rare earths are 17 elements essential for modern technology. They’re found in iPhones, washing machines, and F-35 fighter jets. Electric vehicles, medical devices, and military systems also depend on these materials.

China controls the vast majority of global rare earth processing. This dominance has pushed Washington to invest in domestic sources.

Government’s Mining Strategy Grows

The USA Rare Earth deal continues the Trump administration’s expansion into critical minerals. Last year, the government took equity positions in MP Materials, Lithium Americas, and Trilogy Metals.

A senior administration official said last month more deals were coming. The goal is boosting production of lithium, rare earths, and other minerals used in defense and artificial intelligence.

Cantor Fitzgerald is advising USA Rare Earth on the fundraising. The firm is chaired by Brandon Lutnick, whose father Howard Lutnick serves as U.S. Secretary of Commerce.

Sector-Wide Rally Continues

Other rare earth stocks climbed on the news. U.S.-listed shares of Trilogy Metals, Lithium Americas, and MP Materials rose between 5% and 12.4%.

Rare earth mining companies enjoyed strong performance throughout 2025. Global supply constraints and international competition for critical minerals drove prices higher.

Trump’s recent proposals regarding resource-rich Greenland added fuel to the sector’s gains this year. The rare earth industry has become a focal point for governments seeking supply chain independence from China.

The company’s investor conference call Monday morning will provide additional details on both the government and private investment packages.