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USA Rare Earth Inc. (Nasdaq: USAR) experienced significant gains following revelations that newly appointed CEO Barbara Humpton has been in direct communication with the Trump administration. The stock closed over 22% higher on Tuesday at around $22.71, with after-hours trading pushing shares above $25. In pre-market trading on Friday, October 3, 2025, at 8:56 AM EDT, the stock continued its upward momentum, trading at $25.35, representing an additional 11.62% gain from the previous close. The surge reflects growing investor confidence in the company’s strategic positioning within the domestic rare earth supply chain at a time when the U.S. government is aggressively investing in critical minerals infrastructure.

Trump Admin Talks Position USAR at Center of Critical Minerals Push

Barbara Humpton, who was appointed CEO on Monday after previously serving as President and CEO of Siemens AG’s American subsidiary, disclosed during a CNBC interview that USA Rare Earth maintains “close communication with the administration.” She emphasized the company’s efforts to keep the White House informed about its strategic plans, stating that building out the rare earth marketplace “will not be a zero sum game” and will require multiple players. The timing of these revelations is particularly significant given the Trump administration’s recent pattern of securing major stakes in domestic critical minerals producers, including a $400 million investment in MP Materials and equity positions in Lithium Americas Corp.

The market’s enthusiastic response reflects broader investor sentiment around government-backed rare earth initiatives. The U.S. Department of Energy recently took a 5% equity stake in Lithium Americas, while the Department of War (formerly Department of Defense) has committed $43.4 million to an Alaskan antimony mining operation and awarded a $245 million antimony supply agreement to United States Antimony Corp. These investments signal a coordinated federal strategy to reduce dependence on Chinese rare earth supplies, positioning companies like USA Rare Earth as potential beneficiaries of substantial government support.

USAR Strengthens Market Position With $100M UK Rare Earth Deal

Adding to the positive momentum, USA Rare Earth announced this week its acquisition of Britain’s Less Common Metals (LCM) for $100 million in cash and 6.74 million shares. The company claims LCM is the leading rare earth metal and alloy producer outside of China, producing critical materials including samarium, terbium, neodymium praseodymium, gadolinium, dysprosium, and yttrium. Chairman Michael Blitzer stated the combination would “establish rare earth metal making in the United States for the first time in decades,” with plans to expand LCM’s capabilities across the UK and Europe for defense and industrial applications.

USA Rare Earth currently operates a development-stage rare earths mine at Round Top Mountain in Texas through a joint venture with Texas Mineral Resources Corp, and is constructing a sintered neodymium magnet production facility in Oklahoma following a $75 million investment secured in April. The company’s stock has shown remarkable year-to-date performance, with returns of approximately 97.82% compared to the S&P 500’s 14.17% gain. With a current market capitalization of $2.585 billion and trading volume of over 23 million shares on Tuesday, USA Rare Earth has emerged as a focal point for investors betting on U.S. rare earth sector development amid escalating geopolitical tensions over critical mineral supplies.

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