USA Rare Earth ($USAR) is making headlines in December 2025 with strategic moves that strengthen its role in the rare earth space. On December 4, 2025, its new subsidiary, Less Common Metals (LCM), signed a supply deal with Solvay and Arnold Magnetic Technologies. The agreement secures rare earth metals and alloys for permanent magnets vital to aerospace, defense, automotive, and clean energy. In addition, the agreement advances USAR’s Stillwater, Oklahoma magnet facility, scheduled for Q1 2026..
Liquidity Boost
On November 26, USA Rare Earth appeared on the Russell 2000® preliminary list, effective December 22. Moreover, the inclusion expands visibility with institutions and reinforces liquidity and confidence.
Solid Foundation
On November 6, 2025, the company reported strong results. It held over $258 million in cash at quarter end and carried no significant debt. Following warrant exercises, USA Rare Earth lifted its cash balance above $400 million. This foundation supports advancement of the flagship Round Top Project in Texas. The company plans to complete its Pre-Feasibility Study in the second half of 2026.
Cautious Investors
Overall, market sentiment has remained mixed; on November 24, 2025, options activity skewed 77% bearish versus 22% bullish, while traders targeted a wide $12–$35 price band. This highlights the volatility surrounding the stock, as investors weigh its strong cash position and government support against the risks of scaling new projects.
Summary
USA Rare Earth is rapidly positioning itself as a cornerstone of the U.S. rare earth supply chain. With the LCM partnership, upcoming Stillwater magnet plant, Russell 2000 inclusion, and strong cash reserves, the company is building credibility.
UPDATE
President Trump signed S.1071, the National Defense Authorization Act for Fiscal Year 2026, on Thursday, December 18, 2025
The 2026 NDAA is especially important for rare earths and critical minerals, elevating them from industrial commodities to strategic assets.
UPDATE
01/24/2026
The U.S. government is preparing a $1.6 billion debt‑and‑equity investment into USA Rare Earth (USAR), giving Washington a 10% ownership stake and deepening its push to onshore critical minerals, magnets, and supply‑chain capacity. This is the largest U.S. government investment in the rare‑earth sector to date and directly supports domestic mining and magnet manufacturing—an area strategically relevant to defense, AI, and semiconductor supply chains.
What the $1.6B Deal Actually Includes:
10% equity stake in USA Rare Earth
16.1M shares issued to the U.S. government
17.6M additional warrants priced at $17.17/share
$1.6B total package: a mix of debt + equity
Announced alongside a separate $1B private investment
