USA Rare Earth Shares Surge 62% Pre-Market on $1.6B Trump Administration Stake
USA Rare Earth (USAR) stock skyrocketed in pre-market trading following news of a $1.6 billion investment package from the TRUMP administration. The deal grants Washington a 10% equity stake, making it the largest public shareholder in the critical minerals company.
The agreement includes 16.1 million shares and warrants for an additional 17.6 million shares at $17.17 each. A separate $1 billion private investment is expected to be announced Monday, mirroring recent government stakes in MP Materials and Lithium Americas.
The pre-market surge extends last week's 50% rally as investors bet on growing geopolitical importance of rare earth elements. This marks the administration's fourth major mining sector intervention since 2023.