TLDR
- USA Rare Earth (USAR) shares jumped over 9% in premarket trading Friday after CEO Barbara Humpton confirmed discussions with the White House
- The rare-earth magnet company is in “close communication” with the White House according to a CNBC report
- The move follows recent government action in critical minerals, including a stake in Lithium Americas earlier this week
- The administration formed a public-private partnership with MP Materials in July
- Rare earth minerals are essential for electric vehicles, wind turbines, and defense systems
USA Rare Earth shares climbed more than 9% in Friday premarket trading. The jump came after CEO Barbara Humpton confirmed the company is talking with the White House.
Humpton told CNBC late Thursday that the rare-earth magnet producer is “in close communication” with the White House. The confirmation sparked immediate investor interest.
The stock movement fits into a broader pattern of government activity in the critical minerals space. Just this week, the U.S. government confirmed taking a stake in Lithium Americas.
That action followed another major move in July. The administration set up a public-private partnership with MP Materials, another rare-earths producer.
Rare earth elements play a key role in modern technology. These minerals go into electric vehicles, wind turbines, and defense systems.
The materials are difficult to source domestically. China controls much of the global supply chain for rare earth processing.
Government Push for Domestic Supply
The White House has been working to strengthen U.S. rare earth production. The talks with USA Rare Earth appear to be part of that effort.
MP Materials became the first company to secure a government partnership in the sector. The July deal signaled a shift in federal policy.
Lithium Americas received government backing through an equity stake this week. The move showed continued commitment to building domestic mineral capacity.
USA Rare Earth produces rare-earth magnets. These magnets are critical components in various applications.
The company’s technology allows for domestic production. That aligns with current administration goals for supply chain security.
Investors responded positively to news of the White House discussions. The premarket surge reflected confidence in potential government support.
Market Response and Recent Activity
The stock saw immediate movement after the CNBC report. Shares were up over 9% before regular trading began Friday.
This follows a pattern seen with other companies in the sector. MP Materials and Lithium Americas both saw stock gains after their government deals were announced.
The rare earth market has attracted more attention lately. Supply chain concerns have pushed the issue higher on the policy agenda.
USA Rare Earth’s confirmation of talks adds the company to a growing list. Multiple firms are now engaged with federal officials on critical minerals.
Barbara Humpton’s statement to CNBC provided the first public confirmation. The company is in “close communication” with the White House on these matters.
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