9. USA Rare Earth Inc. (NASDAQ:USAR)
USA Rare Earth Inc. (NASDAQ: USAR) also made the list after rebounding 13.05 percent on Wednesday to close at $22.57 per share, as investors appeared to hunt for bargains following several days of weakness. The stock had been under pressure for seven straight trading days, with volatility and losses cutting roughly 25 percent from its share price. That made Wednesday’s rebound one of the more closely watched moves among U.S. stocks tied to rare earths, critical minerals, domestic supply chains, national security, electric vehicles, defense technology, and clean energy manufacturing.
The biggest driver behind the volatility was uncertainty over rare earth negotiations between the United States and China. Rare earth elements may sound like a niche market, but they are deeply important to modern industry. They are used in electric vehicle motors, wind turbines, smartphones, advanced electronics, military equipment, batteries, magnets, and other strategic technologies. Because China has long dominated global rare earth processing, any discussion involving U.S.-China trade tensions, export restrictions, or supply chain independence can quickly move rare earth stocks. That is exactly why USA Rare Earth became a major focus for traders on Wednesday.
The stock’s rebound came after investors repositioned their portfolios amid the lack of concrete progress on rare earths following a meeting between President Donald Trump and Chinese President Xi Jinping. For USA Rare Earth, the political backdrop is complicated. On one hand, the company has benefited from Washington’s push to secure a domestic rare earth and critical minerals supply chain. On the other hand, any easing of Chinese restrictions or a broad resolution between the two countries could weaken the urgency around domestic sourcing. That is why USAR’s stock can move sharply depending on how investors interpret developments in U.S.-China relations.
What makes the story even bigger is USA Rare Earth’s recent agreement to acquire rare earth miner Serra Verde Group for $2.8 billion. Serra Verde owns the Pela Ema rare earth mine and processing plant in Goiás, Brazil, which gives USAR a potentially broader platform in the rare earth supply chain. The deal involves $300 million in cash and more than 126.8 million USAR shares, with the transaction expected to close in the third quarter of the year, subject to customary closing conditions and regulatory approvals.
For investors searching for the best rare earth stocks, critical minerals stocks, mining stocks, U.S. supply chain stocks, and China trade-related market movers, USA Rare Earth’s Wednesday rally showed how quickly sentiment can change in this space. The move was partly a rebound from a steep sell-off, but it was also a reminder that rare earth companies remain highly sensitive to geopolitics, industrial policy, and global supply chain security. In short, USAR is not just a mining stock. It is also a political, strategic, and national-security trade.
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