Introducing the company aiming to establish a presence in the rare earth elements market, currently dominated by China.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 21 2025
0mins
Should l Buy USAR?
Source: Yahoo Finance
China's Dominance in Rare Earth Elements: China controls the majority of the rare earth elements (REEs) market, particularly in hard REEs, which are essential for various high-tech applications. Companies are seeking to establish non-China-based supply chains to reduce dependency on Chinese resources.
Brazilian Rare Earths (BRE): BRE is positioning itself as a key player in the REE market by developing a significant mineral province in Brazil, with plans to start production by 2028 and processing by 2030, aiming to provide high-purity REEs that are less environmentally intrusive to mine.
Market Demand and Growth Potential: The demand for rare earth magnets is expected to surge, particularly due to the rise of electric vehicles and advanced technologies. Analysts predict a fivefold increase in magnet demand in the U.S. by 2035, highlighting the urgency for alternative REE sources.
Strategic Partnerships and Challenges: BRE has secured a partnership with French firm Carester for technical expertise, enhancing its production capabilities. However, challenges remain, including potential delays in permitting and market fluctuations due to China's actions.
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Analyst Views on USAR
Wall Street analysts forecast USAR stock price to rise
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 21.770
Low
15.00
Averages
22.75
High
28.00
Current: 21.770
Low
15.00
Averages
22.75
High
28.00
About USAR
USA Rare Earth, Inc. is a supplier of sintered neo magnets and other rare earth metals. The Company is engaged in developing a NdFeB magnet manufacturing plant in Stillwater, Oklahoma, and intends to establish domestic rare earth and critical minerals supply, extraction, and processing capabilities to both supply its magnet manufacturing plant and market surplus materials to third parties. It is focused on developing domestic rare earth production that offers sustainable and secure domestic supply of materials critical to key industries. Its vertically integrated approach consists of sourcing rare earth elements (REEs), in addition to other critical minerals such as gallium, to producing finished NdFeB magnets. The Company serve a variety of industries, such as defense, robotics, electric vehicles, wind power, appliances, cordless tools and computing and semiconductors. The Company owns, Less Common Metals Ltd., which is a scaled ex-China rare earth metal and alloy manufacturer.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
USA Rare Earth Accelerates Development Plans with Major Investment
- Government Investment Support: The U.S. government has significantly bolstered USA Rare Earth's financial position by acquiring 16.1 million shares and providing a $1.3 billion loan, enabling the company to advance its mine development project and ensure future business growth.
- Processing Facility Construction: USA Rare Earth plans to open a new processing facility in 2026, which is expected to further increase revenue streams and solidify its market position in rare-earth metal processing.
- Mine Development Outlook: The new mine is projected to produce 15 of the 17 rare-earth metals, including dysprosium, terbium, yttrium, and lutetium, while also potentially providing critical minerals like gallium and beryllium, which are widely used in cellphones and national defense.
- Long-term Investment Risks: Although USA Rare Earth is expected to achieve full operational status within the next five years, the substantial capital investments required for mine construction may lead to financial pressures in the short term, prompting investors to carefully assess risks.
See More
USA Rare Earth Stock Soars 83% Year-to-Date Following Government Collaboration
- Stock Surge: USA Rare Earth's stock has surged 83% year-to-date, with an impressive 88.4% increase in January, reflecting strong market confidence following the company's collaboration agreement with the U.S. government, which is expected to drive future growth.
- Funding Insights: The company raised $3.1 billion through a combination of a $1.3 billion senior secured loan and $277 million from equity sales, significantly derisking its business model and boosting management's medium-term operational expectations.
- Production Capacity Expansion: With the new agreement, USA Rare Earth plans to ramp up production to 27,500 tonnes per annum of metal and 10,000 tonnes of rare earth magnets by 2030, projecting revenues of $2.6 billion and EBITDA of $1.2 billion, indicating a robust financial outlook.
- Strategic Importance: Despite political risks and operational hurdles, the company's commitment to securing a domestic supply of critical rare earth materials underscores its strategic significance in the market, potentially offering long-term returns for investors.
See More
CME Group Plans to Launch World's First Rare Earth Futures Contract
- Rare Earth Futures Initiative: CME Group is considering launching the world's first rare earth futures contract aimed at providing producers, consumers, and financiers with tools to hedge against price volatility, potentially unlocking funding for Western mining and processing projects.
- Focus on Critical Elements: The contract would be tied to neodymium and praseodymium (NdPR), which are essential for electric vehicle motors, wind turbines, and advanced weapon systems, highlighting their significance in modern technology.
- Enhancing Market Transparency: By creating a transparent and liquid pricing benchmark, CME aims to disrupt China's dominance in the rare earth market and reduce reliance on Chinese pricing, thereby increasing market competitiveness.
- Strategic Industry Implications: In the context of escalating U.S.-China trade tensions, the launch of a rare earth futures contract is seen as a crucial step to address the industry's financing challenges, especially following China's export controls, which have heightened the demand for stable pricing mechanisms.
See More
USA Rare Earth Secures Major Agreement with U.S. Government
- Agreement Context: USA Rare Earth has signed a significant agreement with the U.S. government to commercialize the Round Top deposit in Texas by 2028, although this will result in the dilution of 16.1 million shares, increasing political risk.
- Funding Support: The company has raised approximately $3.1 billion in capital through a $1.5 billion securities purchase agreement with Inflection Point and other investors, aimed at accelerating the mine-to-magnet value chain, despite existing shareholders facing dilution.
- Strategic Importance: The Round Top deposit is touted as the 'richest known deposit of heavy rare earth elements,' making its development crucial for the U.S. to secure a domestic supply of critical heavy rare earth materials and magnets, particularly for electric vehicle and renewable energy applications.
- Market Reaction: Although the company's stock price fell by 6.76% following the announcement, investors should monitor the company's progress toward commercial operations, as raising capital is viewed as a positive move given that the company is not yet generating revenue.
See More
USA Rare Earth Navigates Political Risks with New Agreements
- Major Agreement Signed: USA Rare Earth has signed an agreement with the U.S. government to issue 16.1 million shares, raising $3.1 billion to fund the commercialization of the Round Top deposit in Texas, expected to begin production in 2028, thereby enhancing the company's competitive position in the rare earth market.
- Increased Political Risk: While the new agreement provides financial support, issuing shares to the government may introduce future political interference and regulatory risks, particularly as administrations change, potentially impacting the company's operational stability.
- Strategic Importance of Rare Earth Resources: The Round Top deposit is described as the
See More
Analysis of Investment Opportunities in Critical Minerals
- USA Rare Earth Prospects: USA Rare Earth is set to debut on public markets in March 2025 following a merger with a SPAC, with its Round Top deposit containing 15 of the 17 rare-earth elements, positioning it as a leader in the U.S. rare-earth market and likely to attract investor interest and drive stock price appreciation.
- Government Investment Support: The company has signed a letter of intent with the U.S. government for a $1.6 billion investment, which mitigates uncertainties surrounding the Round Top project and enhances its strategic position within the rare-earth supply chain.
- Deep-Sea Mining Potential: TMC The Metals Company focuses on harvesting polymetallic nodules from the seafloor and plans to partner with Korea Zinc for metal refining, which is expected to drive growth in copper and nickel markets to meet future demand.
- MP Materials Market Advantage: As the only fully integrated rare-earth producer in the U.S., MP Materials has secured over $500 million in funding from the Department of Defense and plans to launch a heavy rare-earth separation facility in 2026, further solidifying its market position and reducing price volatility risks.
See More
USA Rare Earth Accelerates Development Plans with Major Investment
- Government Investment Support: The U.S. government has significantly bolstered USA Rare Earth's financial position by acquiring 16.1 million shares and providing a $1.3 billion loan, enabling the company to advance its mine development project and ensure future business growth.
- Processing Facility Construction: USA Rare Earth plans to open a new processing facility in 2026, which is expected to further increase revenue streams and solidify its market position in rare-earth metal processing.
- Mine Development Outlook: The new mine is projected to produce 15 of the 17 rare-earth metals, including dysprosium, terbium, yttrium, and lutetium, while also potentially providing critical minerals like gallium and beryllium, which are widely used in cellphones and national defense.
- Long-term Investment Risks: Although USA Rare Earth is expected to achieve full operational status within the next five years, the substantial capital investments required for mine construction may lead to financial pressures in the short term, prompting investors to carefully assess risks.
See More
USA Rare Earth Stock Soars 83% Year-to-Date Following Government Collaboration
- Stock Surge: USA Rare Earth's stock has surged 83% year-to-date, with an impressive 88.4% increase in January, reflecting strong market confidence following the company's collaboration agreement with the U.S. government, which is expected to drive future growth.
- Funding Insights: The company raised $3.1 billion through a combination of a $1.3 billion senior secured loan and $277 million from equity sales, significantly derisking its business model and boosting management's medium-term operational expectations.
- Production Capacity Expansion: With the new agreement, USA Rare Earth plans to ramp up production to 27,500 tonnes per annum of metal and 10,000 tonnes of rare earth magnets by 2030, projecting revenues of $2.6 billion and EBITDA of $1.2 billion, indicating a robust financial outlook.
- Strategic Importance: Despite political risks and operational hurdles, the company's commitment to securing a domestic supply of critical rare earth materials underscores its strategic significance in the market, potentially offering long-term returns for investors.
See More
CME Group Plans to Launch World's First Rare Earth Futures Contract
- Rare Earth Futures Initiative: CME Group is considering launching the world's first rare earth futures contract aimed at providing producers, consumers, and financiers with tools to hedge against price volatility, potentially unlocking funding for Western mining and processing projects.
- Focus on Critical Elements: The contract would be tied to neodymium and praseodymium (NdPR), which are essential for electric vehicle motors, wind turbines, and advanced weapon systems, highlighting their significance in modern technology.
- Enhancing Market Transparency: By creating a transparent and liquid pricing benchmark, CME aims to disrupt China's dominance in the rare earth market and reduce reliance on Chinese pricing, thereby increasing market competitiveness.
- Strategic Industry Implications: In the context of escalating U.S.-China trade tensions, the launch of a rare earth futures contract is seen as a crucial step to address the industry's financing challenges, especially following China's export controls, which have heightened the demand for stable pricing mechanisms.
See More
USA Rare Earth Secures Major Agreement with U.S. Government
- Agreement Context: USA Rare Earth has signed a significant agreement with the U.S. government to commercialize the Round Top deposit in Texas by 2028, although this will result in the dilution of 16.1 million shares, increasing political risk.
- Funding Support: The company has raised approximately $3.1 billion in capital through a $1.5 billion securities purchase agreement with Inflection Point and other investors, aimed at accelerating the mine-to-magnet value chain, despite existing shareholders facing dilution.
- Strategic Importance: The Round Top deposit is touted as the 'richest known deposit of heavy rare earth elements,' making its development crucial for the U.S. to secure a domestic supply of critical heavy rare earth materials and magnets, particularly for electric vehicle and renewable energy applications.
- Market Reaction: Although the company's stock price fell by 6.76% following the announcement, investors should monitor the company's progress toward commercial operations, as raising capital is viewed as a positive move given that the company is not yet generating revenue.
See More
USA Rare Earth Navigates Political Risks with New Agreements
- Major Agreement Signed: USA Rare Earth has signed an agreement with the U.S. government to issue 16.1 million shares, raising $3.1 billion to fund the commercialization of the Round Top deposit in Texas, expected to begin production in 2028, thereby enhancing the company's competitive position in the rare earth market.
- Increased Political Risk: While the new agreement provides financial support, issuing shares to the government may introduce future political interference and regulatory risks, particularly as administrations change, potentially impacting the company's operational stability.
- Strategic Importance of Rare Earth Resources: The Round Top deposit is described as the
See More
Analysis of Investment Opportunities in Critical Minerals
- USA Rare Earth Prospects: USA Rare Earth is set to debut on public markets in March 2025 following a merger with a SPAC, with its Round Top deposit containing 15 of the 17 rare-earth elements, positioning it as a leader in the U.S. rare-earth market and likely to attract investor interest and drive stock price appreciation.
- Government Investment Support: The company has signed a letter of intent with the U.S. government for a $1.6 billion investment, which mitigates uncertainties surrounding the Round Top project and enhances its strategic position within the rare-earth supply chain.
- Deep-Sea Mining Potential: TMC The Metals Company focuses on harvesting polymetallic nodules from the seafloor and plans to partner with Korea Zinc for metal refining, which is expected to drive growth in copper and nickel markets to meet future demand.
- MP Materials Market Advantage: As the only fully integrated rare-earth producer in the U.S., MP Materials has secured over $500 million in funding from the Department of Defense and plans to launch a heavy rare-earth separation facility in 2026, further solidifying its market position and reducing price volatility risks.
See More
