USA Rare Earth gains after delivering better-than-expected quarterly results
USA Rare Earth is rising in postmarket trading after releasing better-than-expected Q1 results.
Key numbers:
Revenue of $5.67 million (compared to analyst estimates of $4.22 million).
An adjusted loss per share of $0.12 (estimate: a $0.14 loss).
Management aims to achieve 3,000 metric tons per annum of run rate for metal-making and alloy capacity by year-end, along with 600 MTPA of run rate for magnet manufacturing capacity.
The results come during a period of unease in the global rare earth market. China previously moved to drastically curb critical mineral access in October, adding five new elements to its export controls and freezing supplies to semiconductor manufacturers. These materials may be on the agenda during discussions between US and Chinese leadership this week.
In response, the US has scrambled to build domestic production buffers. In January 2026, USA Rare Earth secured a landmark $1.6 billion government-backed package from the Department of Commerce, which included a $1.3 billion senior secured loan under the CHIPS and Science Act and $277 million in direct incentives in exchange for a 10% federal equity stake.
The company also announced a definitive agreement to acquire Serra Verde Group, owner of the Pela Ema rare earth mine and processing plant in Goiás, Brazil. The $2.8 billion acquisition is expected to close in the third quarter of 2026, subject to customary closing conditions and regulatory approvals.
