USA Rare Earth Inc (NASDAQ:USAR) shares are trading higher Thursday morning following the announcement of a key strategic partnership aimed at fortifying the Western rare earth supply chain. Here’s what investors need to know.
What To Know: The company revealed that its subsidiary, Less Common Metals, has signed a supply agreement with chemical giant Solvay and Arnold Magnetic Technologies. Under the deal, LCM will utilize its metal-making expertise to provide high-quality rare-earth materials for Arnold’s advanced permanent magnets. The partnership focuses on securing reliable inputs for critical sectors including aerospace, defense, and energy.
CEO Barbara Humpton emphasized the deal’s strategic importance, noting it helps “rebuild strength and resilience” by establishing a supply ecosystem independent of China. This agreement is a critical operational step as USAR prepares to commission its flagship magnet manufacturing facility in Stillwater, Oklahoma, in the first quarter of 2026.
The bullish market reaction contrasts with the volatility seen after last month’s earnings miss. Investors appear to be focusing on the long-term growth narrative, with the CFO previously noting that magnet demand is “locked into 2033” and outstripping capacity, securing a steady feedstock of raw materials resolves a major hurdle in USAR’s path to full commercial production.
Benzinga Edge Rankings: Despite the morning’s gains, Benzinga Edge data signals caution, highlighting negative price trends across short, medium and long-term horizons.
USAR Price Action: USA Rare Earth shares were up 6.13% at $14.88 at the time of publication on Thursday, according to Benzinga Pro data.
Currently, the stock is trading approximately 27.1% below its 50-day moving average, indicating that it has struggled to maintain momentum over the medium term. However, it is trading about 3.4% above its 200-day moving average, suggesting a more favorable long-term outlook and potential for recovery.
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How To Buy USAR Stock
By now you’re likely curious about how to participate in the market for USA Rare Earth – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of USA Rare Earth, which is trading at $14.74 as of publishing time, $100 would buy you 6.78 shares of stock.
If you’re looking to bet against a company, the process is more complex. You’ll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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