USA Rare Earth (USAR) Climbs 17.4% on US Minerals Inventory Plan

We recently published 10 Stocks Crushing Wall Street With Massive Gains. USA Rare Earth Inc. (NASDAQ:USAR) was one of the top performers on Tuesday.

USA Rare Earth soared by 17.42 percent on Tuesday to close at $25.97 apiece as investors increased their exposure in rare earths stock following news that more than 50 minerals can be included in President Donald Trump’s stockpile program.

Called the Project Vault, the US would create an inventory of rare earth minerals critical to the production of various industries such as semiconductors, automotive, gadgets, batteries, electric cars, and military applications, among others, as it aims to boost domestic production and reduce reliance on China.

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Under the project, companies that have pledged to buy materials at a specific inventory will pay upfront fees and provide Project Vault with a list of their preferred materials, and they will also agree to repurchase the same amount at the same price in the future.

USA Rare Earth Inc. (NASDAQ:USAR) rallied alongside its counterparts, including Energy Fuels Inc., following the news.

The positive development followed USA Rare Earth Inc.’s (NASDAQ:USAR) successful $1.6 billion financial support from the US government in a bid to accelerate the country’s rare earth production.

The total amount would include $277 million in government funding and another $1.3 billion in senior secured loan.

In addition, the company raised its common stock Private Investment in Public Equity (PIPE) to $1.5 billion, with participation from large mutual fund complexes.

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Disclosure: None. This article is originally published at Insider Monkey.