Highlights

  • EODHD/Others maintains a Buy rating on USAR despite the recent pullback in the stock.
  • Shares fell over 15% in five sessions after a sharp rally tied to policy funding news.
  • Federal backing plans continue to support the long-term domestic rare earths theme.
  • The company’s vertically integrated magnet and rare earth strategy remains in focus.

USA Rare Earth (NASDAQ:USAR) came under selling pressure in the latest session, with the stock closing at USD 21.88, down 6.66% on the day and 15.75% over the past week (as of February 10, 2026), according to EODHD/Others data. The recent pullback follows a strong run-up over the prior month, with the shares still up 26.62% over one month and higher by 23.13% over three months, highlighting continued volatility around the stock following policy-linked developments.

Despite near-term price weakness, EODHD/Others data shows a consensus Buy recommendation on USA Rare Earth, with a current recommendation score of 1.8. The current target price stands at USD 37, implying upside of around 69% from recent levels, reflecting expectations tied to the company’s positioning within the US critical minerals strategy and its vertically integrated rare earth and magnet manufacturing plans.

Policy Backing and Funding Framework

USA Rare Earth has been in focus after disclosure of a non-binding letter of intent outlining up to USD 1.6 billion in planned federal backing, including a USD 1.3 billion Commerce Department loan, USD 277 million in federal funding support, and a potential government equity stake. The company has also cited additional private funding commitments. The policy-linked support aligns with Washington’s broader push to reduce reliance on China’s dominance in rare earth processing and magnet supply chains, which are critical to defence and advanced manufacturing.

Business Model and Strategic Positioning

USA Rare Earth is developing a NdFeB magnet manufacturing facility in Stillwater, Oklahoma, and is pursuing domestic sourcing, extraction, and processing of rare earth elements and critical minerals to support magnet production while marketing surplus materials to third parties. The company’s vertically integrated model spans rare earth sourcing and processing through to finished magnet manufacturing, with applications across defence, robotics, electric vehicles, wind power, appliances, cordless tools, and computing and semiconductors. The group also owns Less Common Metals Ltd., an ex-China rare earth metal and alloy manufacturer.

Market Reaction and Volatility

The stock’s recent decline follows a sharp rally after funding-related disclosures, with price action reflecting profit-taking and reassessment after the initial reaction to policy support. EODHD/Others period returns show the shares remain higher over one, three, and six months despite the latest pullback, underscoring the stock’s sensitivity to news flow and policy developments.

Risk Context

USA Rare Earth remains in a pre-revenue stage, with project execution, financing structure finalisation, and operational ramp-up among key variables being monitored by the market. The federal funding framework remains non-binding, and timelines for capacity build-out and commercialisation continue to be areas of focus for investors.