USA Rare Earth, LLC (NASDAQ: USAR), a developer of rare earth magnets and minerals, saw its shares rise sharply on Friday after Chief Executive Officer Barbara Humpton (appointed October 1st, 2025) said the company is in “close communication” with the Trump Administration. The comments have fueled speculation that the company could be among the next group of strategic mineral suppliers to receive government investment.

In an interview with CNBC on Thursday, Humpton confirmed that USA Rare Earth has been engaged in discussions with the administration when asked whether the company would be open to federal investment. Rare earth elements, including neodymium magnets, are critical inputs for industrial and military applications, and U.S. policymakers have increasingly prioritized reducing dependence on Chinese supply chains.

The announcement comes as the federal government has taken recent equity stakes in strategically significant companies. Earlier this week, the Department of Energy disclosed that it would acquire a 5% ownership position in Lithium Americas Corp. (NYSE: LAC) and its Nevada-based Thacker Pass lithium project. In July, the Department of Defense announced a $400 million investment in MP Materials (NYSE: MP), making the U.S. government the miner’s largest shareholder.

Shares of USA Rare Earth rose 15% in Friday trading following a 23% increase the prior day. Lithium Americas gained 28% over the week, while MP Materials, the best-performing stock in the Russell 1000 in 2025, added 3%.

Rare earth elements are essential in the production of advanced batteries, high-performance magnets, and weapons systems. With China currently controlling the majority of global rare earth production and processing, U.S. officials have moved to secure domestic supply sources. Earlier this year, China restricted shipments of rare earths to the United States in response to trade tensions, underscoring the vulnerability of the supply chain.

Bank of America recently projected that demand for neodymium magnets in the U.S. could increase fivefold over the next decade. Even with expanded government investment in domestic suppliers, analysts expect continued reliance on imports to meet demand in the medium term.

About USA Rare Earth

USA Rare Earth, LLC (OTC: USAR) is an American developer of rare earth magnets and minerals with operations focused on building a fully integrated, U.S.-based supply chain for critical materials. The company’s mission is to reduce reliance on foreign sources and strengthen domestic capacity for industrial and defense applications.

Stock.News does not hold positions in companies mentioned in the article.