USA Rare Earth in ‘Close Communication’ With Trump Administration. The Stock Is Rising 24%.

“What we’re doing is keeping the administration informed of our plans,” said CEO Barbara Humpton. (Courtesy USA Rare Earth)

Key Points

• USA Rare Earth shares rise sharply, following CEO Barbara Humpton’s comments in a TV interview on communication with the Trump administration.
• The stock has increased over 60% in the three days since Humpton became chief executive.
• Government investments in MP Materials and Lithium Americas for critical minerals have led to significant stock gains for those companies.

Shares of USA Rare Earth were climbing sharply Friday after CEO Barbara Humpton told CNBC the rare earth miner was “in close communication” with the Trump administration.

“What we’re doing is keeping the administration informed of our plans, and we expect that partnership to continue,” said Humpton, who took the helm as chief executive on Wednesday. The answer lifted hopes that USA Rare Earth may secure federal government investment.

USA Rare Earth told Barron’s it wouldn’t be commenting further.

USA Rare Earth stock was climbing 24% on Friday, putting the company on pace for an all-time closing high, according to Dow Jones Market Data. Shares have gained each of Humpton’s first three days, having risen more than 60% over that period.

The Department of Defense took a stake in fellow rare earth supplier MP Materials in July to build out the country’s magnet supply chain and reduce dependency on China. And earlier this week, the Department of Energy invested in Canadian lithium miner Lithium Americas. Both stocks have soared since the announcements.

Write to Nate Wolf at nate.wolf@barrons.com