$USAR

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.

Brazil's President Lula's reelection may not align with Trump's political preferences, but the U.S. has secured access to critical rare-earth resources through Serra Verde, a Brazilian producer. USA Rare Earth, a Nasdaq-listed company, acquired Serra Verde with $1.6 billion in Commerce Department funding, ensuring U.S. access to these materials, reducing dependence on China. The deal includes a $750 million supply contract and a $565 million loan for mine expansion, despite political tensions.

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.

USA Rare Earth (USAR) gained 1.3% after Texas Capital initiated coverage with a Buy rating and $28 price target, citing the importance of domestic onshoring of critical mineral production.

Japan warned the US it is months away from running out of yttrium, a rare earth mineral used in jet engines and chipmaking, and asked for help in easing China's export restrictions. China defended its restrictions, citing concerns about Japan's remilitarization. US rare earth stocks MP Materials (NYSE:MP), USA Rare Earth (NASDAQ:USAR), and Energy Fuels (NYSEAMERICAN:UUUU) saw minor gains. Yttrium is crucial for AI chip expansion, and China produces most of it.

Oppenheimer upgraded Zoom (ZM) to Outperform with a $130 target, citing new services. Baird upgraded Northrop Grumman (NOC) to Outperform with a $675 target. Erste Group upgraded Intuitive Surgical (ISRG) to Buy. Piper Sandler upgraded DigitalOcean (DOCN) to Overweight with a $126 target. Raymond James upgraded Prologis (PLD) to Outperform with a $163 target. Needham downgraded Netflix (NFLX) to Hold. TD Cowen downgraded Chipotle (CMG) to Hold with a $32 target.

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.

USA Rare Earth (USAR) aims to become a vertically integrated rare-earth company, owning the Round Top deposit in Texas and targeting 2028 for commercial production. The company has government support, including up to $1.6 billion in funding, but is still in its growth stage, burning cash and generating little revenue. USAR's stock is down 4.96% on the day, with a market cap of $3.95 billion.

MP Materials (NYSE: MP) and USA Rare Earth (NASDAQ: USAR) have different risk profiles and valuations. MP Materials has operational mines and secured customers, while USA Rare Earth is in development with higher potential returns. USA Rare Earth aims for $2.6B revenue and $900M FCF by 2030, but trades at a discount. MP Materials focuses on light rare-earth elements, while USA Rare Earth targets heavy rare-earth elements.