USA Rare Earth started Buy at Texas Capital as 'well-aligned with domestic onshoring tailwinds'

USA Rare Earth (USAR) began construction on an $1.2B rare-earth metal and magnet facility in South Carolina. The 800,000 sq. ft. plant aims to make the company a vertically integrated producer, reducing U.S. reliance on China for these critical materials. USAR's expansion includes Texas mining and a Brazilian acquisition, targeting government and defense contracts.

United States Antimony (UAMY) and USA Rare Earth (USAR) stocks rose 11%, while Critical Metals (CRML) climbed 8%, driven by sector-wide buying in critical minerals. UAMY reported a $314M resource valuation for its Nolan Creek property, and CRML completed its acquisition of European Lithium. The VanEck Rare Earth ETF (REMX) gained 4%, outperforming the broader market.

USA Rare Earth received over $3 billion in federal funding, with deals involving Cantor Fitzgerald and Cerberus Capital Management alumni. The company's stock has fallen 61% over a year, and the government's investment is now worth less. USA Rare Earth acquired Serra Verde, backed by Pentagon and US International Development Finance Corp. funding. Questions arise about potential conflicts of interest and lack of transparency in the dealings.

Critical Metals (CRML) shares fell 7% despite shareholder approval of its acquisition of European Lithium, which would grant full control of a Greenland rare earth project. USA Rare Earth (USAR) and United States Antimony (UAMY) also declined 5% and 3%, respectively. The VanEck Rare Earth ETF (REMX) dropped 3%, while the broader market (SPY) fell 1%. The deal awaits court approval and new shares are expected to begin trading in early November.

United States Antimony (UAMY) rose 11% to $3.18, while USA Rare Earth (USAR) fell 3% and Critical Metals (CRML) dropped 4%. UAMY benefits from a $245M Defense Logistics Agency contract, with Q3 2026 deliveries increasing. The company cut revenue guidance to $60M-$75M but expects antimony prices to stay around $10/lb. USAR and CRML focus on rare earth elements, with USAR expanding its supply chain and CRML awaiting project approvals.

JPMorgan's $1.5T Security and Resiliency Initiative (SRI) has deployed about $5B of its $10B equity fund into 10 companies in its first year, focusing on growth capital. The initiative spans five sectors, including critical minerals. USA Rare Earth (USAR) and MP Materials (MP) saw stock gains after the initiative's launch, partly due to China's rare earth export controls. The SRI's impact on critical minerals remains unclear, with limited public evidence of disbursements.