Why Shares of USA Rare Earth Are Plunging Today
Key Points
USA Rare Earth investors are speculating the Trump administration is no longer interested in partnering with the company.
Nova Minerals reported that it has been asked to provide a report on its gold and antimony project.
Even if the U.S. government doesn't invest in USA Rare Earth, there's reason to believe the company's prospects are strong.
- 10 stocks we like better than USA Rare Earth ›
It's time for the latest edition of which mining company will the Trump administration partner with next. In today's episode, it seems less likely that rare earth stock USA Rare Earth (NASDAQ: USAR) will be one of the upcoming winners -- much to the chagrin of investors, as the Trump administration seems more interested in signing another metals stock to its dance card.
As of 12:30 p.m. ET, shares of USA Rare Earth are down 1.3%, recovering a bit from their earlier slide of 12.8%.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
It's not only rare earths on the White House's radar
Australian company Nova Minerals (NASDAQ: NVA) announced today that it has been asked to provide a report on its Estelle Gold and Critical Metals Project, a mineral deposit located in Alaska that contains gold and antimony, in advance of President Trump's upcoming meeting with the Australian prime minister.
Like rare earths, the United States is highly reliant on China for antimony. Listed on the U.S. Geological Survey's Draft List of Critical Minerals, antimony is used in a variety of applications essential to the nation's defense, including military equipment and semiconductors.
After the Trump administration issued executive orders regarding shoring up the domestic supply of rare earths and entered into a partnership with rare earth producer MP Materials (NYSE: MP), investors have speculated that USA Rare Earth would soon receive an equity investment from the U.S. government. Today, however, investors are finding that it's not only rare earths where the administration's attention is focused.
Should investors buy USA Rare Earth stock on the dip?
While an equity investment from the U.S. government could be interpreted as a positive sign, it's certainly not the only validation that a mining company needs to suggest its stock is a buy. Even if the White House chooses to pass over USA Rare Earth as a partner, there are plenty of reasons to believe that the company will thrive in the coming years as it develops its rare earth magnet production facility.
Should you invest $1,000 in USA Rare Earth right now?
Before you buy stock in USA Rare Earth, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and USA Rare Earth wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $657,412!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,154,376!*
Now, it’s worth noting Stock Advisor’s total average return is 1,075% — a market-crushing outperformance compared to 190% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of October 13, 2025
Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.
Recommended Articles
