Latest news with #USARareEarth
Yahoo
a day ago
- Business
- Yahoo
As Trump Bets Big on Rare Earth Magnets, This Hidden-Gem Stock Could Soar
Rare-earth magnets are essential components in electric vehicles (EVs), drones, missiles, and other high-tech and defense systems. For decades, China has held a dominant grip over their production, prompting growing concerns in Washington about supply chain vulnerabilities. In April 2025, those concerns escalated to the highest level. Recently, President Trump signed an executive order triggering a Section 232 investigation into U.S. dependence on imported processed critical minerals. The order followed China's suspension of exports of key heavy rare earths and magnets, a move widely viewed as an attempt to weaponize trade and disrupt U.S. industry. More News from Barchart It's Never 'Happened in the History of Tech to Any Company Before': OpenAI's Sam Altman Says ChatGPT is Growing at an Unprecedented Rate This Penny Stock Wants to Become the MicroStrategy of Dogecoin Robinhood Stock Stumbles as S&P 500 Inclusion Is Once Again Off the Table for HOOD Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Against this backdrop, the U.S. government is doubling down on efforts to secure a domestic magnet supply chain. MP Materials (MP) recently struck a high-profile deal to supply rare-earth magnets to Apple (AAPL) from its Texas plant, signaling strong commercial demand for local production. USA Rare Earth (USAR), meanwhile, is racing to establish itself as a homegrown leader, building out its Oklahoma facility and securing upstream resources to support America's strategic independence. With breakthroughs in domestic processing and bold expansion plans, USAR is emerging as a key player in the domestic rare-earth resurgence. About USAR Stock Founded in 2019, USA Rare Earth (USAR) is a micro-cap company working to build a fully integrated U.S. supply chain for neodymium-iron-boron (NdFeB) magnets. Its mission is to bolster domestic production, from mining rare-earth elements to manufacturing finished magnets, and reduce America's dependence on foreign suppliers. Over the last 52 weeks, USAR stock has surged nearly 29%, climbing from the low single digits to a market capitalization of approximately $1.32 billion. Much of the rally stemmed from investor enthusiasm following MP Materials' high-profile Apple deal, which sparked speculation that USAR could land similar partnerships, despite no official announcements. However, the stock's soaring valuation has drawn attention. With a forward price-to-earnings ratio of 73, far above the sector median of 17, USAR now trades at a significant premium, having spiked 146% from its March year-to-date lows. USAR Ambitious Projects USA Rare Earth, which went public via a SPAC merger, is rapidly building a fully integrated U.S. supply chain for NdFeB magnets, crucial for defense and clean energy technologies. The company is constructing a 310,000 sq. ft. magnet plant in Stillwater, Oklahoma, aiming to produce 5,000 metric tons annually and generate up to $800 million in revenue. The facility will utilize equipment from a decommissioned Hitachi magnet line. USAR also controls the Round Top deposit in Texas, which is rich in heavy rare earths like dysprosium and terbium. In early 2025, it produced high-purity dysprosium oxide from Round Top ore, marking a key milestone in in-house processing. Among its key milestones set recently, the company has launched an Innovations Lab; signed its first customer memorandum of understanding (MOU); and raised over $100 million this year - including a $75 million PIPE deal - to fund its expansion. CEO Joshua Ballard calls the effort a 'Manhattan Project' to reestablish U.S. dominance in rare-earth manufacturing. Financial Overview Despite USAR's lofty valuation, the company remains pre-revenue, with no sales reported to date as it continues to build out its magnet production facilities. In Q1 2025, USAR posted net income of $52,000, largely driven by one-time accounting items. On an adjusted basis, the company recorded a $12 million loss, or $0.19 per share, due to rising R&D and project expenses. USAR has raised over $100 million in 2025, including $75 million through a PIPE deal, providing capital to advance its Stillwater magnet plant. On the balance sheet, the company held $23.4 million in cash and cash equivalents, up from $16.8 million at year‑end 2024. It used $10.3 million in operating cash and $3.1 million on investing activities in the quarter, while financing activities provided $20.0 million, resulting in a net cash increase of $6.6 million for the period. Is USAR Stock a Good Buy? Wall Street analysts are bullish on USAR's growth potential, with all three in coverage giving the stock a unanimous 'Strong Buy' rating. They have set an average price target of $17.33, implying a potential upside of about 26.7% from current levels. As the U.S. ramps up efforts to break China's rare-earth dominance, USA Rare Earth is building critical infrastructure at a pivotal moment. Backed by federal momentum and investor capital, USAR is aggressively expanding its footprint. If it secures commercial deals, this under-the-radar stock could deliver explosive upside for early backers - though given its pre-revenue status, USAR is best reserved for investors with a long time horizon, and a healthier-than-usual appetite for risk. On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. 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Yahoo
5 days ago
- Business
- Yahoo
Why USA Rare Earth Stock Gave Up Some Gains Today
Key Points MP Materials is signing rare earth magnet deals left and right. USA Rare Earth... isn't. MP Materials has revenue and a path to profit. Meanwhile, USA Rare Earth has some optimistic forecasts, but no revenue. 10 stocks we like better than Usa Rare Earth › Rare earths mining start-up USA Rare Earth (NASDAQ: USAR) stock has been on a roll this past week. Ever since rival miner MP Materials (NYSE: MP) signed its $400 million investment deal with the U.S. Department of Defense last week, investors have been betting that USA Rare Earth might be next in line to collect those sweet, sweet government subsidies for itself. But that's looking like an increasingly bad bet. USA Rare Earth is no MP Materials Shares of USA Rare Earth stock are down 7.1% through 1:55 p.m. ET Wednesday, and the reason is simple: USA Rare Earth is not MP Materials. Not even close. In contrast to MP, which has active rare earths mining operations, a refining business gearing up, and a nascent rare earth magnets business too -- all generating more than $200 million in revenue last year, expected to grow that number 30% this year, and then nearly double revenue in 2026 -- USA Rare Earth collected revenue of zero dollars, zero cents last year. This year should be similar, and while revenue may begin in 2026, it's unclear when, if ever, USA Rare Earth stock will turn profitable. Adjusted profits are expected in 2028, but no analysts have a date for when USA Rare Earth might earn a generally accepted accounting principles (GAAP) profit. Is USA Rare Earth stock a sell? Meanwhile, MP Materials has signed the Pentagon to a 10-year deal to buy rare earth magnets at guaranteed prices. And just yesterday, MP announced a separate, $500 million partnership with Apple to buy even more of its magnets. With every passing day, it becomes clearer which rare earth stock both government and corporate America prefer to partner -- and its name isn't "USA Rare Earth." Should you invest $1,000 in Usa Rare Earth right now? Before you buy stock in Usa Rare Earth, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Usa Rare Earth wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $679,653!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,308!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy. Why USA Rare Earth Stock Gave Up Some Gains Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Why USA Rare Earth Stock Is Soaring Higher (Again) Today
Key Points Shares of rare-earth stock USA Rare Earth are climbing today despite the absence of news from the company. A newly announced partnership between MP Materials and Apple is likely partly responsible for the rise in USA Rare Earth stock today. USA Rare Earth is developing a rare-earth magnet production facility in Oklahoma. 10 stocks we like better than Usa Rare Earth › Extending their rise from Monday, shares of rare-earth stock USA Rare Earth (NASDAQ: USAR) are rising higher today. Like yesterday, the company hasn't announced any news today that would drive investors to bid the stock higher. But, also like yesterday's climb, it's probable that shares of USA Rare Earth are climbing in sympathy with the rise in shares of rare-earths peer MP Materials. As of 11:13 a.m. ET, shares of USA Rare Earth are up 25.4%. Investors are speculating good news is on the horizon While USA Rare Earth didn't have anything to report today, one of its leading peers did. MP Materials announced a $500 million partnership with Apple that will see the companies collaborate on the production of recycled rare-earth magnets. The reasons why investors are pouring into USA Rare Earth stock today upon news of the collaboration between MP Materials and Apple are probably two-fold. For one, investors who have had MP Materials on their radars but who haven't purchased its stock are likely feeling that they've missed the boat considering shares of MP Materials have soared since the start of 2025, so they're scratching their itch for rare-earth stock exposure with USA Rare Earth. Second, investors are likely speculating that a similar sort of partnership to the one MP Materials and Apple just announced is on the horizon for USA Rare Earth, which itself is developing a rare-earth magnet production facility in Oklahoma. Is investing in USA Rare Earth a smart move? Although MP Materials has inked some notable agreements with the Department of Defense and Apple over the past week, USA Rare Earth hasn't had much to report. Until the company announces something material to the growth of its business, only investors with substantial tolerance for risk should consider positions at this point. Do the experts think Usa Rare Earth is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Usa Rare Earth make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,053% vs. just 180% for the S&P — that is beating the market by 873.17%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,670!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy. Why USA Rare Earth Stock Is Soaring Higher (Again) Today was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
12-07-2025
- Business
- Yahoo
Why USA Rare Earth Stock Popped Today
The Pentagon is investing $400 million in MP Materials to promote rare-earth mining. USA Rare Earth is a second miner that might -- might! -- receive a similar investment. Unlike MP Materials, however, USA Rare Earth is not actually yet producing rare earths. 10 stocks we like better than Usa Rare Earth › Rare-earth miner MP Materials said this morning the U.S. Department of Defense is making a big investment in its rare-earth magnets business, sending its stock price up 60% in morning trading. Now, investors in another rare-earths start-up, USA Rare Earth (NASDAQ: USAR), are wondering if their company might be next in line. It's pure speculation at this point, but still good enough for a 15.9% increase in share price through 12:05 p.m. ET. The Pentagon agreed to buy all the rare earth magnets MP can produce over 10 years, guaranteeing minimum prices no matter the market price, and making a $400 million investment in MP preferred convertible stock. This appears to be the first investment in a new sovereign wealth fund the Trump administration has discussed establishing, aimed at securing government access to "critical minerals." USA Rare Earth may hope its company will receive a similar deal, but there are big differences between these two. The most important difference: USA Rare Earth is way behind MP Materials in its development as a commercial venture. Last year, MP Materials produced 45,455 metric tons of rare-earth oxides in concentrate form, 1,294 metric tons of NdPr oxide, and recorded $61 million in revenue. USA Rare Earth, in contrast, had revenue of $0. Granted, it's possible the Trump administration will invest in USA Rare Earth stock to accelerate its commercial development. I'd even go so far as to say it's likely, to create redundancies in the supply chain and ensure price competition. But it's not certain. The only thing that's certain right now is that MP Materials stock is a much safer investment than USA Rare Earth stock. Before you buy stock in Usa Rare Earth, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Usa Rare Earth wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $694,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $998,376!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy. Why USA Rare Earth Stock Popped Today was originally published by The Motley Fool
Business Insider
27-06-2025
- Business
- Business Insider
MP, USAR, NEO: China's Rare-Earth Exports to U.S. Declined 80% in May
China's exports of rare-earth metals, minerals and magnets to the U.S. fell 80% in May as Beijing tightened controls on overseas sales. Confident Investing Starts Here: The sharp decline in shipments to the U.S. is significant as rare-earth metals are critical components of technologies from smartphones to electric vehicles, as well as solar panels and military equipment such as fighter jets and missile systems. Rare-earth metals have become a major point of contention between the U.S. and China in their ongoing trade dispute and tariffs between the two countries. Total export volumes of rare-earth elements from China fell 80% in May from a year earlier, according to Chinese customs data. That was the biggest percentage decline on record. Businesses Scramble Publicly traded companies that are involved directly in the extraction and processing of rare-earth metals include MP Materials (MP), USA Rare Earth (USAR), and Neo Performance Materials (TSE:NEO). Despite a 90-day truce in its trade war with the U.S., China appears to be maintaining tight control over its rare-earth exports, preserving a key source of leverage in future negotiations. The situation has left American businesses scrambling to find alternatives for the rare-earth metals, minerals and magnets they need to make their products. There's currently little evidence that China is removing its rare-earth export controls. China has typically accounted for 80% of all rare-earth metals imported by the U.S., according to American government data. Globally, China is the world's largest producer of rare-earth metals, minerals and magnets, accounting for 70% of annual production, which is estimated at 210,000 tonnes a year. Is MP Stock a Buy? average MP price target of $29.14 implies 19.37% downside risk from current levels.
