Why Is USAR Stock Rising Today?

On Monday, USA Rare Earth commissioned its hydrometallurgical demonstration facility in Wheat Ridge, Colorado.

• The move is expected to position USA Rare Earth among the few companies outside China capable of producing separated heavy rare earth oxides.
• The raw minerals for oxide production will be sourced from Serra Verde, Round Top, and other third parties.
• First production of separated oxides is targeted for the third quarter of 2026.

Shares of USA Rare Earth (USAR) surged on Monday after the company said it is commissioning its hydrometallurgical demonstration facility in Wheat Ridge, Colorado, as it executes its strategy to produce rare earth minerals domestically.

At the time of writing, USAR stock was up more than 5% in premarket trading.

USAR’s Fully Integrated Rare Earth Platform

The company said the move will enable the production of commercial-grade heavy rare earth oxides, including dysprosium, terbium, and yttrium, in the U.S., making it one of the few Western firms with such capabilities.

The raw minerals for oxide production will be sourced from Serra Verde, a company it recently bought in April, which controls 100% of the Pela Ema rare earth mine and processing plant in Goiás, Brazil; Round Top, a rich North American heavy rare earths deposit owned by the company; and other third parties.

Following that, the oxides will be sent to the company’s subsidiary, Less Common Metals, which in turn is expected to supply USA Rare Earth’s permanent magnet business. First production of separated oxides is targeted for the third quarter this year.

Rare Earths: A Trump Administration Priority

Securing rare earth minerals has been among the top priorities of the current Trump administration. In the U.S., the government is actively looking to jump-start such facilities to increase the stockpile of resources critical to electric vehicles, consumer electronics, smartphones, and defense systems, among other things, thereby reducing dependence on other nations, especially China.

Notably, the United States currently holds a 10% stake in the USAR.

“The hydromet facility is the latest example of the proprietary technology and capabilities USA Rare Earth is scaling across the entire value chain,” said Barbara Humpton, Chief Executive Officer of USA Rare Earth. “We are rapidly building the only fully integrated rare earth platform of its kind outside China — moving deliberately and at speed to be the partner of choice in the materials the most critical industries depend on.”

Outside the U.S., the administration has been pressuring countries such as Greenland, a major region with untapped rare-earth mineral deposits, and Ukraine to grant access to their undeveloped mineral deposits in exchange for military and diplomatic support.

What Do Retail Traders Think About USAR?

On Stocktwits, retail sentiment on USAR turned ‘bearish’ from ‘neutral’ over the last 24 hours.

USAR stock has risen nearly 85% so far this year, and more than 51% over the last 12 months, outperforming the S&P 500.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<