Buy Usa Rare Earth Stock

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Buy Usa Rare Earth Stock

Is It The Right Time To Buy USA Rare Earth Stock?

USA Rare Earth gained almost 88.4% in January 2026, which is a record in itself. Many stocks can take years to gain this much upside, but USA Rare Earth managed it in just a month.

This upside in the USA Rare Earth stock was because of the fact that they secured an agreement with the US government. The US government is planning to start production of rare earth minerals in the USA, and this firm is at the center of this whole plan.

USA Rare Earth's Agreement With US Government

The agreement with the US government has both pros and cons. For starters, the interest of the existing shareholders is diluted as the company issued new shares to the government.

On the other hand, the USA Rare Earth managed to get funding of $3.1 billion, which can help them to proceed with the business plan. In fact, the funding has allowed USA Rare Earth to raise its forecasts for operational expectations and the financial targets for the next few years.

The company is planning to start commercial production in Stillwater in 2026. After that, the next facility will start in 2028 in Texas and help the company further increase production.

This inflow of funds will be used to finance the processing, mining, and magnet production. Overall, we can view this investment as a way to kickstart the company, as the US plans to start extracting rare earth minerals on US soil.

The market cap of USA Rare Earth is $4.74 billion, which makes it a very reasonable valuation. And the fact that the US government is also involved in it means USA Rare Earth wouldn't have any major roadblocks ahead of it.

But there are risks associated with the mining and processing of the rare earth minerals. But still, the USA Rare Earth is playing a key role in helping the US to establish a domestic supply of the rare earth magnets.

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