Key Takeaways
- USA Rare Earth’s stock price surged 48% in 2026 after a decline in December 2025
- The company owns the mining rights to the Round Top Mountain deposit in Texas, one of the richest rare-earth deposits in the U.S.
- USA Rare Earth is building a rare-earth magnet manufacturing facility in Stillwater, Oklahoma, to cover the entire value chain from mining to magnet production
- Geopolitical shifts in Venezuela may provide a new mineral corridor and a non-China feed source for USA Rare Earth’s magnets
- The company has secured a supply of rare-earth metals, alloys, and strip casting feedstock for magnet production at Stillwater without dependence on China
Introduction to USA Rare Earth
USA Rare Earth, a rare earth mining-to-magnet company, has started 2026 on a high note, with its stock price surging 48% as of the latest update. This comes after a decline in December 2025, where the stock price tumbled 11.5%, resulting in a mere 3.7% gain for the year, according to data provided by S&P Global Market Intelligence. The company’s stock had previously soared in mid-2025, with gains of over 200% at one point, driven by President Donald Trump’s push for rare earths and the U.S. government’s investment in mining companies, including rare-earth giant MP Materials.
Rare Earths and Their Importance
Rare earths are vital elements for several industries, including semiconductors, electronics, renewable energy technology, electric vehicle (EV) motors, and medical imaging. The U.S. relies heavily on rare-earth imports, with 80% of its consumption in 2024 being met through imports, and a significant 77% of it coming from China. The escalating trade tensions between the U.S. and China led to retaliatory export controls, which propped up shares of rare-earth miners. However, President Trump downplayed the threat from China in a CBS 60 Minutes interview, stating that the rare-earth threat is "gone, completely gone" after the U.S. government struck a deal with China to pause the latter’s rare-earth export restrictions for a year.
December 2025 Stock Slump
The statement by President Trump deflated fears of a shortage, and with USA Rare Earth not receiving any federal backing, the stock slumped in December 2025. This decline occurred despite the company speeding up the timeline for its Round Top deposit by two years, with commercial production now expected to begin by late 2028, instead of 2030. The Round Top Mountain deposit in Texas, one of the richest rare-earth deposits in the U.S., is owned by USA Rare Earth, and the company is also building a rare-earth magnet manufacturing facility in Stillwater, Oklahoma. This facility will allow the company to cover the entire value chain, from mining to magnet production, making it an attractive investment opportunity.
2026 Stock Surge
The rare earth stock is taking off in 2026 due to several factors, including geopolitical shifts in Venezuela, which have sparked speculation of a new mineral corridor that could unlock Venezuela’s rare-earth reserves and provide USA Rare Earth with a vital non-China feed source for its magnets. Additionally, USA Rare Earth’s recent strategic move to secure a supply of rare-earth metals, alloys, and strip casting feedstock for magnet production at Stillwater, without any dependence on China, has contributed to the stock’s surge. The company’s facility in Stillwater is scheduled for commissioning in the first quarter of 2026, and investors are loading up on USA Rare Earth stock in anticipation of its future growth and potential.
Future Outlook
With the company’s strong portfolio of rare-earth assets, its strategic moves to secure a non-China supply chain, and the potential for a new mineral corridor in Venezuela, USA Rare Earth is poised for significant growth in 2026 and beyond. The company’s ability to cover the entire value chain, from mining to magnet production, makes it an attractive investment opportunity in the rare earth sector. As the demand for rare earths continues to grow, driven by the increasing adoption of electric vehicles, renewable energy technologies, and other applications, USA Rare Earth is well-positioned to capitalize on this trend and deliver strong returns to its investors.
