Why USA Rare Earth Stock Is Plunging Today
Key Points
The U.S. and China seem closer to reaching an agreement with China's imposition of rare earth export controls.
USA Rare Earth is developing a rare earth magnet production facility in Oklahoma.
The stock's pullback provides a good buying opportunity for those comfortable with a speculative investment.
- 10 stocks we like better than USA Rare Earth ›
After closing at more than $31 last Monday, shares of rare earth stock USA Rare Earth (NASDAQ: USAR) closed lower on each subsequent day of the week. And the trend doesn't seem likely to reverse its trajectory today with optimism rising over the weekend that the United States and China would reach an agreement regarding China's rare earth exports.
As of 11:54 a.m. ET, shares of USA Rare Earth are down 11%.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
A framework has rare earth investors frazzled
U.S. officials signaled yesterday that a framework had been reached for a deal with China that addresses American tariffs on steel and Chinese rare earths export restriction, according to Reuters. As a result of the discussions, China seems prepared to delay the implementation of controls on rare earth exports for one year.
Investors have bid U.S.-based rare earth stocks higher recently amid growing speculation that China, the global leader in rare earths production, would restrict its exports of highly sought after minerals.
Should investors click the buy button with the bottom falling out of USA Rare Earth stock?
News that the U.S. has reached a tentative agreement with China regarding rare earths is coming to the chagrin of USA Rare Earth investors, contributing to the mining stock's sharp decline today. To dismiss the stock on the news from the weekend seems shortsighted, though.
Developing a rare earth magnet production facility in Oklahoma, USA Rare Earth has the potential to help the U.S. shore up its domestic supply of rare earths. Whether China has export controls in place or not certainly won't deter the company from proceeding with its development plans, and with these minerals remaining in high demand for the foreseeable future, USA Rare Earth stock remains a great opportunity for those comfortable with the risks associated with its development of the 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 $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% 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 27, 2025
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
