USA Rare Earth, Inc. (NASDAQ:USAR) stock climbed on Friday in premarket trading as investors digest comments from the CEO confirming the company is in discussion with the Trump administration.
USAR stock is climbing. See the real-time price action here.
USA Rare Earth shares climbed sharply after CEO Barbara Humpton told CNBC the company is in regular talks with the White House, sparking speculation about a possible deal.
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“We are in close communication with the administration,” Humpton said in response to a question on whether USA Rare Earth was interested in a deal.
Humpton said she supports the White House’s investments in MP Materials Corp. (NYSE:MP) and Lithium Americas Corp. (NYSE:LAC) and emphasized that the rare earth industry will require cooperation from many companies rather than just one dominant player.
“This is a field where it will not be a zero sum game. It’s going to take a lot of players to build out this marketplace,” Humpton said.
President Donald Trump has said he wants to end America’s reliance on China, which dominates the global market for rare earth minerals used in technologies and defense systems. Trump sees domestic rare earth production as vital for national security and for stable supply chains.
USA Rare Earth is currently working on a rare earth mining project in Sierra Blanca, Texas, and a magnet manufacturing site in Stillwater, Oklahoma.
USAR Price Action: USA Rare Earth stock jumped 23% during Thursday’s normal trading and gained another 13% in Friday’s premarket session, nearly doubling in value so far this year.
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