Why USAR Stock Is Getting Attention In 2026
In case you missed it: On January 26th 2026, the U.S. The Commerce Department took a stake in critical mineral maker USA Rare Earth (USAR).
This follows a trend by the U.S. government purchasing stakes in other stocks like Intel and MP Materials.
But was already being discussed on Wall Street long before the U.S. took a stake in it.
Here's the situation: Your phone, your car, your laptop - they all need rare earth magnets to work.
And right now? China makes over 90% of them.
That's a problem when you're building fighter jets, electronics, and more.
USA Rare Earth went public in march 2025 because it's trying to fix that.
The company wants to mine rare earth minerals, refine them, and turn them into magnets - all in America.
Right now, it’s one of the few companies doing this, which makes it a prime target for the U.S.’s reindustrialization efforts.
We’ve seen the U.S. push to start to manufacture things here at home - hence why it’s been taking stakes in some companies, giving them cash to do it.
That’s because you can’t improve manufacturing without minerals - USAR is doing just that in the U.S.
Let’s break down what is happening with USAR, what it does, and the risks investors need to consider with this potential investing opportunity.
Here's the thing though: We covered this opportunity in depth months ago in Market Briefs Pro.
In that report we went even deeper into USAR, it’s financials, business, and other potential opportunities that may benefit from this market shift into critical minerals.
If you want to read the full report, subscribe to Market Briefs Pro.
What Makes USAR Different
Most rare earth companies focus on one thing.
For instance, MP Materials mines the minerals - Energy Fuels refines them.
USAR wants to do it all.
They call it "mine-to-magnet." Mine the minerals in the U.S., process them here, and manufacture the magnets here.
Why does this matter? Because rare earth magnets are critical components in defense systems and other electronics.
We're talking radar, missile guidance, and submarine motors.
The DoD doesn't want those coming from China. What if politics heat up more and China limits these materials into the U.S.?
Washington does not want to take that risk - so it’s been investing into companies in order to speed up our mineral independence.
The China Problem
As of January 2026, China controls:
It's the only country with a fully integrated supply chain.
The U.S. used to make its own rare earths. But over the past 15 years, we outsourced everything to China because it was cheaper.
Now? We're trying to rebuild that supply chain.
And USAR wants to position itself as the answer.
How USAR Stock Performed After Its IPO
USAR went public in early 2025.
It debuted at around $26/share
Since then, the stock has been highly volatile. As of January 27th, it is trading around $26/share again, just below its all-time high of around $32/share in October 2025.
Why? It’s still in the early stages of its development, and as a small cap company, news about tariffs and rare earths impact it greatly.
Plus, its technology is still experimental - it may show promise, but no profit yet.
In fact, the company also has no revenue and it may not even make a dollar for another few years.
The idea is though: America needs rare earth magnets. USAR is building the infrastructure to make them.
One day that could be extremely valuable, but in the meantime, investors want to see real results from the company and its technology.
The Business Model: Mine-to-Magnet
Here's how USAR's model works:
Step 1: Mine rare earth minerals in the U.S.
Step 2: Refine those minerals into rare earth elements.
Step 3: Turn those elements into rare earth magnets.
Currently, if you want to make a magnet in America, you have to:
- Buy minerals from China.
- Ship them here.
- Process them (maybe).
- Send them back to China for magnet production.
- Import the finished magnet.
USAR is aiming to eliminate this process, which could completely change how this industry operates.
Its plan is to do all of that here in the U.S., which may take years to do at scale, but it’s really the only company that is working on this solution right now.
Why Rare Earth Magnets Matter
Rare earth magnets are essential in several products.
Here's what uses them:
- Defense: F-35 fighter jets, Virginia-class submarines, Tomahawk missiles.
- Tech: Hard drives, smartphones, EV motors.
- Energy: Wind turbines, industrial robotics.
Without rare earth magnets, modern technology doesn't work.
The Risk: Can They Scale?
Here's the big question: Can USAR actually pull this off?
Building a rare earth supply chain is expensive and mining takes years.
Refining is also complex - magnet production requires specialized knowledge.
Our analyst spoke to Dr. Liz Dennett, CEO of Endolith (a mining tech company), in an exclusive interview - she said it takes "an absurd" amount of money to create new mines.
She also noted it takes 10 to 16 years between discovering a deposit and producing ore.
USAR is betting its current cash runway is enough to reach commercial production.
If it works? They could become the de facto rare earth magnet supplier to the U.S. government.
If it doesn't? Shareholders lose, which is part of the reason the stock has been so volatile in the last few months..
What Investors Are Watching
Many investors have their on USAR stock and they;re watching out for specific catalyst to occur over the coming months and years:
- Commercial production launch - When will they start selling magnets?
- Government contracts - Will the DoD become a customer?
- Cash burn rate - How long until they need more funding?
- Revenue generation - When do they report their first dollar of sales?
The company has big plans - but plans don't pay the bills. At the end of the day, investors want a return on their investment.
This stock has the chance to return nothing back to investors though and is highly speculative in nature.
The Broader Rare Earth Market Shift
We mentioned this before - but there’s a broader movement happening here.
The world needs more critical minerals, not just rare earths.
That’s created a push by the U.S. government and interest from investors in other stocks like:
MP Materials is the only U.S.-based rare earth miner and processor. Shares are up around 210% in the past year as of January 27th, 2026.
Energy Fuels pivoted from uranium to rare earths recently - shares are up 367% in the past year as of January 27th, 2026.
Both companies are benefiting from the same shift: America rebuilding its rare earth supply chain.
But USAR is the only one trying to go mine-to-magnet.
Final Thoughts on USAR Stock
USA Rare Earth is a bet on American energy independence.
The stock is volatile, the company isn't profitable, and building a mine-to-magnet supply chain is hard.
But if USAR can execute, it could become a critical supplier to the U.S. military and tech industry.
Keep in mind: Investors should always do their own due diligence and assess their risk tolerance, goals, financial situation before investing in any stock.
USAR is right in the middle of America’s reindustrialization efforts - Investors expect growth, but there’s no guarantee that it will.
Still - investors may want to keep an eye on this potential opportunity the world increases its demand for rare earths and other critical minerals.
Speaking of which: Looking for more potential stock market opportunities?
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