USA Rare Earth Secures $1.3 Billion Loan from Commerce Department
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: CNBC
- Funding Support: USA Rare Earth announced a letter of intent from the Department of Commerce to provide a $1.3 billion loan and $277 million in federal funding, significantly enhancing the company's financial strength and market competitiveness.
- Stock Surge: Following the announcement, the company's stock soared over 20% in premarket trading, reflecting a positive market reaction to the financing news, which may attract more investor interest.
- Strategic Investment: The funding will be used to build a magnet manufacturing plant in Stillwater, Oklahoma, and to mine rare earth deposits at Round Top in Texas, marking a significant step towards enhancing U.S. independence in critical mineral supply chains.
- Policy Context: The Trump administration is focused on establishing a Western rare earth and critical minerals supply chain to reduce dependence on China, with the Secretary of Commerce stating that this project is essential for restoring U.S. critical mineral independence, highlighting its far-reaching strategic implications.
Analyst Views on USAR
Wall Street analysts forecast USAR stock price to fall 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: 26.720
Low
15.00
Averages
22.75
High
28.00
Current: 26.720
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.








