USA Rare Earth Stock Rallies 52% in 6 Months as Demand for Minerals Peaks

Shares of USA Rare Earth (USAR) have recently drawn renewed attention from market watchers after the stock moved above its 50-day simple moving average earlier this week, a level widely viewed by technical analysts as an important support indicator. The move comes on top of USAR already trading above its 200-day moving average, reinforcing perceptions of sustained upward momentum and relative price stability.

From a technical standpoint, the crossover suggests improving investor confidence in the company’s longer-term trajectory, even as it remains in a pre-revenue phase. Over the past six months, USAR shares have rallied 52.1%, significantly outperforming the broader S&P 500, which advanced 19.4% over the same period. The stock has also beaten gains in the Zacks Mining – Miscellaneous industry, which rose 13.3%.

That said, USAR’s performance has trailed some sector peers. NioCorp Developments and Aura Minerals delivered sharper rallies of 110.5% and 117.9%, respectively, highlighting the uneven nature of investor enthusiasm across the critical minerals space.

USAR closed at $16.73 on Thursday, well below its 52-week high of $43.98 but comfortably above its 52-week low of $5.56. With sentiment around U.S.-based rare earth supply chains strengthening, analysts and investors are increasingly reassessing whether the stock has further upside potential.

Stillwater Plant Gets Ready

Operationally, the company’s investment case hinges on its magnet manufacturing ambitions. USA Rare Earth is advancing its Stillwater facility in Oklahoma toward commercial readiness. The plant is designed to manufacture Neodymium Iron Boron (NdFeB) magnets, a core component for applications spanning defense systems, aviation, electric vehicles and other high-growth industrial uses. Once operational at scale, the Stillwater site is expected to rank among the first large-scale NdFeB magnet plants in the United States, aligning with Washington’s push to localize critical mineral supply chains.

The company is currently installing essential equipment and assembling Line 1a at the facility, with commissioning targeted for early 2026. In parallel, USA Rare Earth has begun recruiting and training engineers and technicians to operate the plant — a step management believes will accelerate the transition from pilot operations to commercial-scale output and support negotiations for long-term customer contracts.

Financially, the company has significantly strengthened its balance sheet. Through PIPE financing and the exercise of warrants, USA Rare Earth reported a cash position exceeding $400 million as of November 2025. The capital is earmarked for facility upgrades, expanded magnet finishing capabilities and completion of Line 1b, which would lift total NdFeB magnet production capacity to roughly 1,200 metric tonnes.

Company’s Vertical Integration

The November 2025 acquisition of Less Common Metals further bolstered the company’s vertical integration. In December, Less Common Metals entered into a partnership with Solvay and Arnold Magnetic Technologies, aimed at securing consistent, high-quality alloy feedstock for the Stillwater operation.

Despite these strategic advances, risks remain pronounced. USA Rare Earth has yet to generate operating revenue and continues to post losses as it scales development. In the third quarter of 2025, selling, general and administrative expenses jumped to $11.4 million from $0.8 million a year earlier, driven by higher legal, consulting and staffing costs. Research and development spending also climbed sharply, rising to $4.45 million from $1.16 million.

Those rising costs, only partially offset by higher interest and dividend income from cash holdings, culminated in a net loss of 25 cents per share for the quarter. For investors, the stock’s recent technical strength reflects optimism about execution and policy tailwinds — but the path to sustained profitability remains closely tied to Stillwater’s successful commissioning and the company’s ability to convert momentum into revenue.

  52 percent growth, Buy, Market demand, mineral demand, Stock, USA Rare Earth stock, Wall street