USA Rare Earth (USAR) Soars to New High as Investors Optimistic for US Govt Deal

We recently published 10 Hot Stocks Sparking Buying Frenzy. USA Rare Earth, Inc. (NASDAQ:USAR) is one of the best performers on Tuesday.

USA Rare Earth extended its winning streak to a 5th consecutive day to reach a new all-time high on Tuesday, as investors continued to place bets on expectations that it would reach an investment deal with the US government.

In intra-day trading, USA Rare Earth Inc. (NASDAQ:USAR) soared to a fresh high of $30.92 before paring gains to finish the day just up by 7.41 percent at $28.27 apiece.

Investors remained in a wait-and-see mode following USA Rare Earth Inc. (NASDAQ:USAR) CEO Barbara Humpton’s confirmation earlier that the company was “in close communication” with the White House, saying it was keeping it informed of its own plans.

The talks followed the US government’s acquisition of a 5 percent stake in Lithium Americas earlier this month, and another 5 percent in its flagship Thacker Pass lithium project in Nevada. In July, the government also acquired a 15 percent investment in rare earth miner, MP Materials.

The move was in line with President Donald Trump’s plans to boost the domestic supply of critical minerals in the US while reducing its reliance on imports.

According to Humpton, the rare earth supply chain “is a field where it will not be a zero-sum game.”

USA Rare Earth, Inc. (NASDAQ:USAR) is currently developing a mine site in Sierra Blanca, Texas, and a magnet production facility in Stillwater, Oklahoma.

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