USA Rare Earth stock swung higher on Monday, March 9, as investors reacted to the company’s strategic move last week aimed at consolidating the United States’ coveted rare earth deposits under its control.
In a deal shared on March 5, USAR said it will issue more than 3.8 million shares of common stock to acquire Texas Mineral Resources and its remaining 18.6% interest in the Round Top rare earth and critical minerals project in Texas.
The all-stock transaction valued at over $73 million is expected to close in the third quarter of 2026, subject to regulatory approvals.
The stock of USAR rose more than 7% on Monday, covering some of the earlier losses it suffered this past week. The company’s stock fell about 10% over the past five days and 20% over the past month.
Despite the pullback, the company’s stock is still up 57% year to date as investors continue to focus on rising interest in rare earths and the growing demand for the critical minerals used in emerging technologies.
Why is the Round Top project important?
This latest acquisition will give USA Rare Earth full control of the Round Top deposit in Hudspeth County, Texas, around 85 miles southeast of El Paso.
The project sits on state land under a 19-year renewable lease from the state of Texas and is widely known as a strategically located, significant rare-earth deposit in the United States.
The Round Top deposit contains critical minerals such as gallium, beryllium, lithium, and zirconium, as well as 16 of the 17 rare earth elements. This makes the site valuable, as these materials are widely used in semiconductors, electric vehicles, and defense systems.
Control of this site is crucial to USAR’s strategy to build a fully domestic mine-to-magnet facility for rare earths. Rare earth mining is still dominated by China, which has the biggest refining and processing capacity globally.
USA Rare Earth KL
Building a U.S. rare-earth supply chain
The acquisition comes as USAR secured major funding to expand mining under its Accelerated Mining Plan (AMP), with commercial production expected to begin in 2028.
Under AMP, which now brings together 950 acres and an additional 9,345 acres, USAR expects to extract 40,000 metric tons per day of rare-earth and critical-mineral feedstock from Round Top by 2030.
Earlier this year, the company unveiled a $1.6 billion financing package backed by the U.S. Department of Commerce, including federal funding and a senior secured loan to support the development of Round Top mine and related processing facilities.
More Oil and Gas:
- Energy giant sends blunt $20 billion message on dividend growth
- 147-year-old oil giant just raised dividend 4% in 2026
- Top energy stocks to buy amid Venezuela chaos
Additionally, USAR also successfully closed $1.5 billion through public investment in private equity (PIPE) financing in January.
“This transformational collaboration with Department of Commerce and the proposed $1.6 billion of CHIPS Act funding, along with $1.6 billion of CHIPS Act funding, along with $1.5 billion of private sector financial and strategic capital, will help secure the heavy rare earth supply chain for the U.S. and its allies and underscores USAR’s strategic nature in support of national and economic security,” said USA Rare Earth Board Chair and CEO of Inflection Point Michael Blitzer.
This new acquisition is expected to strengthen investor confidence as USA Rare Earth positions itself at the center of the growing race to secure the critical minerals supply chain.
Related: White House makes surprising $1.6 billion rare earth bet
