New York, Jan 26, 2026, 04:51 (ET) — Premarket.
- USAR climbed roughly 38% in premarket trading, building on its strong performance from the previous session.
- Reports suggest U.S. support could mark one of Washington’s largest forays into rare earths to date.
- Traders await specifics on financing terms and potential dilution.
Shares of USA Rare Earth, Inc. surged 38% to $34.20 in premarket Monday, following a Friday close at $24.77. (Webull)
This move is significant since government funding can tilt the scales for a small miner aiming to develop a mine and a magnet plant on U.S. soil. It also has the potential to quickly affect the share count.
Rare earths usually fly under the radar in mining—until suddenly they don’t. These minerals are key components in magnets powering everything from motors to defence equipment. Investors have shown a strong appetite for anything linked to a “domestic supply chain” angle.
The Trump administration is poised to take a 10% stake in USA Rare Earth, joining a $1.6 billion debt-and-equity deal to back a U.S. mine and magnet plant, two sources told Reuters. The announcement is expected Monday, with the company planning an investor conference call, Reuters said. The White House didn’t immediately respond to requests for comment, and USA Rare Earth declined to comment. (Reuters)
The Financial Times reported the deal includes roughly $277 million in equity and $1.3 billion in senior secured debt — debt secured by collateral that takes priority if the borrower defaults. The funding is linked to the CHIPS and Science Act. According to the report, the government will also get shares and warrants, giving it the option to buy stock later at a predetermined price. (Financial Times)
On the tape, traders see the report as a sign Washington might back segments of the mine-to-magnets chain—a known weak link in the U.S. supply chain. Yet the price moves, typical for thinly traded miners, are racing ahead of the actual details.
Investors need to scrutinize the details closely. Important factors include the debt’s cost, any strings tied to the funding, and the timeline for new shares entering the market.
There’s a risk, though. Should the announcement be delayed, or if the terms prove more dilutive than anticipated, the premarket gains could vanish fast — especially following such a strong run. Add in tough financing conditions, and the rally could unravel even quicker.
The upcoming Monday briefing will focus on the financing package, with details expected on timing, pricing, and how it might affect current shareholders.
