Trump Administration Invests $1.6 Billion in USA Rare Earth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: stocktwits
- Government Investment: The Trump administration acquires a 10% stake in USA Rare Earth through a $1.6 billion debt-and-equity investment package, aimed at supporting the development of a domestic rare-earth mine and magnet manufacturing facility, which is expected to significantly enhance the company's position in critical mineral supply chains.
- Stock Surge: USA Rare Earth shares surged over 40% last week, closing at $24.77 on Friday, representing a roughly 44% premium over the government's entry price of $17.17, reflecting strong market interest and heightened investor confidence in the company's rare earth projects.
- Partner Selection: The company has selected Fluor Corp. and WSP Global as its engineering, procurement, and construction management partners to advance the Definitive Feasibility Study for the Round Top Rare Earth Project in Texas, which is expected to accelerate project progress and enhance market competitiveness.
- European Production Facility: USA Rare Earth plans to develop a 3,750 metric ton-per-annum metal and alloy production facility in Lacq, France, co-located with Carester SAS's 1,600 metric ton per annum Caremag oxide processing facility, scheduled for commissioning by late 2026, establishing a supply chain for rare-earth processing and production in Europe.
Analyst Views on USAR
Wall Street analysts forecast USAR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for USAR is 22.75 USD with a low forecast of 15.00 USD and a high forecast of 28.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 22.710
Low
15.00
Averages
22.75
High
28.00
Current: 22.710
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.
