USA Rare Earth shares surge on report of Trump administration investment
Shares of USA Rare Earth jumped as much as 62% in premarket trading on Monday after reports that the Trump administration was taking a 10% stake in the miner as part of a $1.6-billion debt-and-equity investment package.
The deal and a separate $1-billion private investment will be unveiled on Monday and the company will host a morning conference call with investors to discuss the terms, a source who was briefed on the plans told Reuters over the weekend.
A 10% stake would make the administration the largest public shareholder of the company, according to data compiled by LSEG.
USA Rare Earth has been developing a mine in Sierra Blanca, Texas, with Texas Mineral Resources that is slated to open by 2028. It has a magnet manufacturing facility in Stillwater, Oklahoma, which is expected to launch later this year.
The deal is the latest step in the Trump administration's effort to deepen its presence in the critical minerals space, following last year's equity stakes in MP Materials, Lithium Americas and Trilogy Metals.
A senior Trump official said last month the administration was planning more "historic deals" with the US mining sector.
Rare earths, a group of 17 elements, or the magnets which they are sometimes made into are used in everything from iPhones and washing machines to F-35 fighter jets, as well as in electric vehicles, medical equipment and military systems.
Shares of rare earths miners surged in 2025, driven by tightening global supplies and a worldwide race to secure the domestic critical-mineral resource to curb reliance on China.
Trump's recent gambit of buying resources-rich Greenland further fueled gains this year.
Shares of USA Rare Earth were last up 38.5% before the bell, positioning the stock to build on its more than 100% jump so far in January.
US-listed shares of Trilogy Metals, Lithium Americas and MP Materials also rose between 5% and 12.4%.
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