Why USAR Stock’s Red-Hot Rally Is Set To Extend This Week

• The Trump Administration has reportedly taken the stake through a $1.6 billion debt-and-equity investment package.
• The investment is provided by the administration to help the company build a domestic mine and magnet facility.
• Last week, the company said that Fluor Corp., along with WSP Global have been selected as its engineering, procurement, and construction management partners.

USA Rare Earth shares closed at their highest level in over three months on Friday, as investor interest surged amid heightened geopolitical tensions and a broader market focus on securing critical mineral supply chains. Sentiment has also been boosted by progress across the company’s rare earth projects and renewed attention on Greenland, following the U.S. government’s interest in acquiring the mineral-rich territory. 

Now, the momentum could extend into the new week after reports that the Trump administration has taken a 10% stake in USA Rare Earth as part of a broader investment package. 

According to a Financial Times report citing people familiar with the matter, the administration plans to invest $1.6 billion in the company. The investment, along with a separate $1 billion financing deal, is expected to be announced on Monday. The move follows similar government-backed equity investments last year in Trilogy Metals and MP Materials.

USA Rare Earth shares surged more than 40% last week alone and have more than doubled since U.S. President Donald Trump revived interest in Greenland, a mineral-rich region currently under Danish control. Trading activity has also jumped sharply, with the stock changing hands at nearly three times its average daily volume, reflecting heightened retail participation and speculative interest.

Trump’s Stake In USAR

On Saturday, several media reports said the Trump administration has taken a stake in USA Rare Earth through a $1.6 billion debt-and-equity investment package. Reuters reported that Washington will receive 16.1 million shares in the company, along with warrants for an additional 17.6 million shares.

According to Reuters, both the shares and the warrants are priced at $17.17 per share, a level the stock last traded at earlier in January. USA Rare Earth shares closed at $24.77 on Friday, representing a roughly 44% premium to the government’s entry price. The investment aims to support the development of a domestic rare-earth mine and a magnet manufacturing facility.

USAR’s 2026 So Far

Last week, the company said that Fluor Corp., along with WSP Global have been selected as its engineering, procurement, and construction management partners as part of USA Rare Earth’s efforts to advance the Definitive Feasibility Study (DFS) for the Round Top Rare Earth Project in Sierra Blanca, Texas.

USA Rare Earth also announced that its subsidiary, Less Common Metals (LCM) Europe SAS, planned to develop a 3,750 metric ton-per-annum metal and alloy production facility in Lacq, France.

The facility will be co-located with Carester SAS's 1,600 metric ton per annum Caremag oxide processing facility in Lacq, which is scheduled for commissioning in late 2026. The company said this platform will establish a supply chain for rare-earth processing, metal, and alloy production in Europe.

What Is Retail Thinking?

Retail sentiment on USA Rare Earth was in the ‘extremely bullish’ territory, compared to ‘bullish’ from a week ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

In the last 24 hours alone, retail message volume on the stock jumped 1,691% on Stocktwits, and the stock saw an over 7% spike in followers on the platform.

Shares of USA Rare Earth have surged nearly 103% in the last 12 months.

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