USA Rare Earth Stock Rises After Clearing Final Regulatory Hurdle In LCM Acquisition

• USA Rare Earth said that the acquisition represents a significant acceleration of its magnet-to-mine strategy, establishing an end-to-end rare earth supply chain. 
• The deal would enable LCM to continue expanding and serving its global customer base with a broad portfolio of rare earth and critical metals and alloys.
• The deal comes on the heels of the Trump administration’s attempt to boost U.S. production of critical minerals and the government has invested in a few rare earth companies, including MP Materials and Trilogy Metals.

USA Rare Earth (USAR) shares rose nearly 3% in premarket trading on Wednesday after the company announced that it had received regulatory approval from the UK Minister of State for its acquisition of LCM.

The company said that it has now received the only regulatory approval required and expects to close the acquisition on time, in line with its target for the fourth quarter of calendar year 2025.

Rare Earth Push In The US

The deal comes on the heels of the Trump administration’s attempt to boost U.S. production of critical minerals, and the government has invested in a few rare earth companies, including MP Materials and Trilogy Metals.

The U.S. and China have also reached an agreement to ease rare-earth exports for at least a year. According to a White House Memo, China will issue general licenses valid for the export of rare earths, gallium, germanium, antimony, and graphite, benefiting U.S. end-users and their suppliers worldwide.

The general license means the de facto removal of controls China imposed since 2023.

USA Rare Earth, LCM Deal

USA Rare Earth said that the acquisition represents a significant acceleration of its magnet-to-mine strategy, establishing an end-to-end rare earth supply chain. The deal would enable LCM to continue expanding and serving its global customer base with a broad portfolio of rare earth and critical metals and alloys.

This would also help in the supply of Neodymium Iron Boron (NdFeB) metal and strip cast alloy to USAR's Stillwater, Oklahoma magnet facility once production begins.

USA Rare Earth said that LCM's metals and alloys are essential to the manufacturing of advanced magnets, semiconductors, and aerospace components. LCM supplies customers across defense, automotive, electric vehicle, industrial, and technology sectors in the U.S., UK, France, Germany, Japan, and Taiwan.

Retail sentiment on USA Rare Earth remained unchanged in the ‘bearish’ territory, with message volumes at ‘low’ levels, according to data from Stocktwits.

Shares of USA Rare Earth have gained nearly 55% this year and increased by 65% over the last 12 months. 

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

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