USA Rare Earth Inc (NASDAQ: USAR) saw substantial gains during Tuesday’s session after the company’s new CEO revealed that she has been in touch with White House officials.
The stock closed over 22 per cent higher at 4 p.m. eastern time following her announcement in an interview with CNBC. Gains persisted in after-hours trading, bringing the share price above US$25 after 5 p.m.
“We are in close communication with the administration,” said chief executive Barbara Humpton, adding that she was keeping the White House informed about the company’s plans.
Humpton was appointed as USA Rare Earth’s new Chief Executive Officer on Monday. Previously, she served as President and CEO of Siemens AG‘s (OTCMKTS: SIEGY) (FRA: SIE) American subsidiary.
Sign of the times
The news comes as the Trump Administration continues to pool millions into domestic rare earths and critical minerals infrastructure. The Department of Energy made the latest investment, taking a 5 per cent equity stake in Lithium Americas Corp (TSE: LAC) (NYSE: LAC) (FRA: WUC) and another 5 per cent interest in the company’s Thacker Pass joint venture with General Motors Co (NYSE: GM) (ETR: 8GM).
The American government has also become particularly focused on antimony resources. The U.S. Department of War just invested US$43.4 million into an Alaskan mining operation under development by Nova Minerals Ltd (OTCMKTS: NVAAF) (FRA: QM3) (ASX: NVA). Additionally, the U.S. Defense Logistics Agency awarded United States Antimony Corp (NYSEAMERICAN: UAMY) with a US$245-million-dollar antimony ingot supply agreement in late September.
Furthermore, the Department of Defense, now Department of War after Trump’s re-branding decision, bought US$400 million worth of preferred MP Materials (NYSE: MP) (FRA: 55H0) shares in July. This historic public-private partnership will see that the U.S. government potentially procures 100,000 tons of rare earth magnets over the next decade.
Today’s historical rate of government spending has become a source of motivation for junior mining companies like NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) and USA Rare Earth. Although USA Rare Earth’s activities are broader than most junior companies, it is currently working on a development-stage rare earths mine in Texas. The Round Top Mountain operation is a JV with Texas Mineral Resources Corp (OTCMKTS: TMRC).
Acquiring a leading rare earth metal and alloy producing company this week is another factor that contributed to USA Rare Earth’s surge on the Nasdaq this week.
$USAR is arguably the most explosive looking stock in the market right now. Named "USA RARE EARTH INC". This should be viewed as a sentiment play on United States Rare earth dedication. Very similar to how $OKLO is merely a sentiment trade on Nuclear Power.
This has remarkable… pic.twitter.com/yfrLVzifql
— TSDR Trading (@TSDR_Trading) September 25, 2025
Read more: NevGold Corp’s limousine Butte drill program targets first Gold-Antimony resource estimate
US Rare Earth spends US$100M on alloy maker
Pursuant to a definitive agreement signed this week, Britain’s Less Common Metals will soon become wholly-owned by USA Rare Earth.
The pivotal purchase is costing US$100 million in cash and 6.74 million shares. USA Rare Earth claims that Less Common Metals is the number one rare earth metal and alloy producer outside of China. This assertion is reasonably credible when considering the limited competitive landscape outside of the Asian nation.
Rare earth metals and alloys produced by LCM include samarium, terbium, samarium cobalt, neodymium praseodymium, gadolinium, dysprosium and yttrium.
“The combination of USAR-LCM will establish rare earth metal making in the United States for the first time in decades,” boasted Chairman Michael Blitzer. “Our ambition is also to expand LCM’s capabilities in both the United Kingdom and Europe, supporting the broader ex-China industry with a wide range of defense and industrial applications.”
Less Common Metals announced plans to construct a rare earths plant in France earlier this year with an initial investment of US$130 million.
USA Rare Earth is currently in the midst of constructing a sintered neodymium magnet production facility in Oklahoma. They are the most powerful permanent magnets on the market. A US$75-million-dollar investment was secured in late April for the endeavour.
The recent communications with government officials, acquisition and other activities are all part of the USA Rare Earth’s mission to strengthen the domestic supply chain in the United States.
The company’s IPO performance in March was solid. Shares opened at US$10.90 and closed at US$18.55.
$USAR
New buy on the opening range highs. Doing highest volume ever on the all time high breakout today.New CEO and recent LCM acquisition. Also, part of the rare earth theme and has "USA" in the name… pic.twitter.com/trBbcHL8Nk
— Bracco ⚡️ (@Braczyy) October 2, 2025
Read more: GoldMining chooses to retain its NevGold shares for next 18 months
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