NEW YORK, May 26, 2026, 15:03 (EDT)
• USA Rare Earth shares jumped 9.6% Tuesday afternoon, moving ahead of the overall U.S. market.
• The stock gained after the company was picked by the DOE last week for up to $19.3 million in potential funding for rare-earth separation projects.
• The grant isn’t a lock yet, and the stock is still valued as a bet on a company with little revenue, steep losses, and big expansion plans.
USA Rare Earth Inc. shares gained close to 10% on Tuesday after the Memorial Day holiday, with buyers moving back into U.S. rare-earth stocks linked to government supply-chain spending.
Shares were at $27.74 as of 2:47 p.m. EDT, up $2.44, after touching an intraday high of $28.59. About 18.9 million shares had changed hands, with volume running ahead of recent averages. The company’s market value was close to $5.45 billion.
Rare-earth trade is in focus again as USA Rare Earth said last week it’s been picked by the U.S. Department of Energy for up to $19.3 million in possible funding for a pilot rare earth element separation project, pending final talks. Separation is the key process that turns raw rare-earth mix into usable materials.
The DOE called the Stillwater, Oklahoma project a pilot plant that uses continuous ion exchange (CIX) to separate rare-earth elements, avoiding the standard solvent-extraction method. DOE said it will provide $19.3 million in funding, with $31.2 million coming from non-DOE sources for a total project cost of $50.5 million.
Chief Executive Barbara Humpton called the DOE selection “important validation” of the company’s work to build a resilient rare-earth value chain. The company also said being selected for negotiations is not a binding funding commitment. USA Rare Earth
Tech and chip names pulled the Nasdaq up on Tuesday, driving a broad move higher for U.S. stocks. The S&P 500 added ground, but the Dow barely moved. The session played out on a smoother tape after the long weekend. “Risk-on mentality,” Chase Investment Counsel president Peter Tuz told Reuters. Reuters
U.S. exchanges were closed Monday for Memorial Day. On a typical trading day, NYSE runs its main session from 9:30 a.m. to 4:00 p.m. ET. Tuesday was the first full day of U.S. equity trading this week.
Peers moved up, with gains not limited to one name. MP Materials added 4.9% to $67.60, and Critical Metals climbed 6.7% to $11.72 in afternoon trade.
Geopolitical tension is still in play. China last week said it will cooperate with the United States on “reasonable” issues around rare-earth export controls, but said its curbs follow the law. Reuters said there are sharp shortages in yttrium, used for shielding aircraft-engine and power-plant turbine blades from high heat. Reuters
USA Rare Earth is pitching a mine-to-magnet plan to investors, linking its Round Top deposit in Texas, planned magnet production in Oklahoma, UK-based Less Common Metals, and a pending deal for Serra Verde in Brazil. The company says the setup would run from mining and metal processing through to alloy making and neodymium magnet output. Neodymium magnets are strong permanent magnets used in motors, defense equipment and electronics.
Rally still comes down to execution. USA Rare Earth posted $5.7 million in first-quarter revenue and a net loss to common shareholders of $67.0 million. Capital spending was $38.6 million. The company’s cash climbed to around $1.75 billion, up after a $1.5 billion private investment in public equity, or PIPE. A PIPE is a private share sale by a public company to big investors.
Humpton called the first quarter a “period of fundamental transformation,” citing the PIPE financing, Round Top consolidation and Stillwater commissioning work. That’s the positive view. But there are risks: funding talks could get delayed, output goals could get pushed back, and shares—already moving on Washington ties and tight supply—might fall if backers want real shipments instead of promises. USA Rare Earth
