USA Rare Earth Accelerates Production, Attracts U.S. Stake

Shares of USA Rare Earth (USAR) fell about 13% to $21.89 at 12:04 PM on Jan. 29, 2026, as a flurry of corporate milestones and policy developments drove sector volatility.
The U.S. government is set to take an equity stake — reported at roughly $1.6 billion for about 10% — an infusion aligned with domestic critical‑minerals strategy that could reduce financing risk for near‑term projects.
Management said it has moved the Round Top commercial production timeline forward by two years and secured UK regulatory approval to acquire Less Common Metals in a deal valued near $100 million.
Commercial partnerships and offtake arrangements are multiplying: MoUs and JDAs with industrial partners including Solvay, Compass Diversified and Moog (targeting U.S.‑made neodymium magnets) now total about a dozen, and a supply agreement with Solvay aims to feed U.S. magnet production.
Corporate changes include the appointment of William Steele as CFO and steps toward broader market inclusion, including Russell 2000/3000 additions and past SPAC activity.
Operational progress is tempered by mixed financials — recent non‑GAAP EPS misses of roughly -$0.25 and -$0.08 and a planned $75 million offering — while policy signals from the administration and U.S.‑China trade dynamics continue to drive short‑term price swings.
Investors will watch execution at Round Top, integration of LCM, and how government ownership shapes offtake and financing.