USA Rare Earth Soars to Record High Amid Talks with Trump Administration

Dallas-based miner’s shares surge as CEO confirms close discussions on potential federal support, highlighting the U.S.’s push to secure critical mineral supply chains.

USA Rare Earth, a Dallas-based miner specializing in rare earth elements, surged to an all-time high on Friday after CEO Barbara Humpton confirmed the company is in active talks with the Trump administration regarding potential government support. The stock jumped more than 18% to $32.45, giving the company a market valuation of $2.59 billion. This marks a remarkable year for the company, with shares having more than doubled in value so far.

Humpton told CNBC on Thursday that USA Rare Earth is in “close communication” with the White House, though she did not provide specifics on the form of potential federal backing. Her remarks came shortly after the White House disclosed a 5% equity stake in Lithium Americas and its Thacker Pass joint venture with General Motors. Additionally, in July, the U.S. Defense Department became the largest shareholder in MP Materials, committing to a multibillion-dollar expansion of rare earth magnet production.

President Trump invoked emergency powers earlier this year to boost domestic production of critical minerals after China restricted rare earth exports during a trade dispute. Although Beijing eased restrictions in June, the initiative has drawn attention to the U.S.’s reliance on Chinese suppliers for key elements.

Rare earth elements—a group of 17 metals critical to electric vehicles, smartphones, and military hardware—remain largely dominated by Chinese producers. Humpton emphasized that the sector requires multiple players to build a resilient marketplace, stating, “This is a field where it will not be a zero-sum game. It’s going to take a lot of players to build out this marketplace.”

USA Rare Earth is advancing its domestic production capabilities with a rare earth mine in Sierra Blanca, Texas, and a magnet plant in Stillwater, Oklahoma, both expected to become operational in the first half of 2026. The company is positioning itself as a key manufacturer of magnet alloys known as “neo magnets,” which are essential to a wide array of technologies.

Subash Chandra, analyst at The Benchmark Company, noted that government investment could take multiple forms but highlighted that “there’s still a missing piece to the mines-to-magnets strategy.” Any support for USA Rare Earth would align with broader U.S. efforts to secure critical mineral supply chains and counter Beijing’s dominance in the sector.

With the combination of robust market interest, government engagement, and strategic domestic development, USA Rare Earth is emerging as a central player in the U.S.’s rare earth industry, signaling a potential shift in the global mineral supply landscape.