Shares of USA Rare Earth spiked in extended trading Thursday after CEO Barbara Humpton revealed the company is “in close communication” with the White House, signaling that it could become the next beneficiary of Washington’s strategic push to secure critical minerals.
Humpton’s remarks followed the Trump administration’s decision to take a 5% equity stake in Lithium Americas, a lithium miner central to the EV supply chain. That move came on the heels of a 15% equity stake in MP Materials, the largest rare earth producer in the United States, announced in July.
“We are in close communication with the administration,” Humpton told CNBC’s Morgan Brennan when asked if her firm was seeking a similar deal. Shares rose about 6% after hours, following a 23% gain in regular trading on Thursday. The stock has now nearly doubled in 2025.
“This is a field where it will not be a zero sum game,” Humpton said, stressing that the rare earth supply chain will require collaboration across multiple players.
USA Rare Earth is developing a mine in Sierra Blanca, Texas, and a magnet production facility in Stillwater, Oklahoma—two assets that could prove pivotal as the U.S. seeks to build an end-to-end domestic supply chain.
Humpton voiced support for the administration’s earlier investments in MP Materials and Lithium Americas, noting, “What we’re doing is keeping the administration informed of our own plans.”
Breaking China’s grip
The U.S. government has made clear its goal to reduce reliance on China, which controls the majority of global rare earth mining and refining capacity. These materials—including neodymium, praseodymium, and dysprosium—are essential for everything from electric vehicle motors to wind turbines to military hardware.
The administration’s direct equity stakes mark a sharp shift from traditional policy tools like grants or loans, underscoring the urgency of securing domestic supply. Analysts say such investments not only provide capital but also send a signal to investors that Washington intends to build resilience in a sector long dominated by Beijing.
Comparative positioning
With the MP Materials and Lithium Americas deals already in place, USA Rare Earth’s proximity to the White House is notable. If it secures a federal investment, it would further deepen America’s emerging “strategic mining triangle” across lithium, magnets, and rare earths.
For comparison, China continues to tighten export controls on rare earths, while the European Union and Japan are pursuing joint ventures abroad to diversify supply. Washington’s approach—direct ownership stakes—marks a more aggressive model, reflecting not just economic competition but also national security considerations.
While Humpton stopped short of confirming that a deal was imminent, her comments suggest USA Rare Earth is positioning itself as a natural candidate for future government backing. With projects already underway in Texas and Oklahoma, the company could provide a vital domestic alternative in a sector where demand is expected to soar.
As the rare earth race heats up globally, the Trump administration’s actions have elevated the stakes. U.S. miners are no longer just commercial ventures—they are now becoming instruments of economic and geopolitical strategy.
