Here's Why USA Rare Earth Stock Soared Today
Shares in USA Rare Earth (NASDAQ: USAR) spiked higher by as much as 11% by 2 p.m today. The move comes as the speculation mounts that a regime change in Venezuela will lead to favorable trading relationships with U.S. companies, and that could include USA Rare Earth.
The Orinoco Mining Arc in Venezuela reportedly has 300,000 metric tonnes of rare-earth deposits, including lanthanum, thorium, and neodymium. The latter of which USA Rare Earth could potentially use as a source of supply for its Stillwater, Oklahoma facility, which it plans to start producing rare-earth magnets this year.
As a reminder, the company's business model involves first producing rare-earth magnets at Stillwater in 2026 and then beginning commercial development of the Round Top mining deposit in Texas in late 2028. However, to do this, it needs to secure a non-China feed source of rare-earth materials.
Source Fool.com
