Today’s Change
Current Price
USA Rare Earth (USAR +12.73%), a U.S. rare-earth and critical minerals supplier, closed Monday at $22.58, up 13.18%. The stock is rallying after announcing a $2.8 billion acquisition of Serra Verde that expands its mine-to-magnet footprint. Investors are watching for execution on the company’s enlarged rare-earth portfolio and its targeted 2030 EBITDA of $1.8 billion. Trading volume reached 42.7 million shares, about 118% above its three-month average of 19.6 million shares. USA Rare Earth IPO’d in 2025 and has grown 22% since going public.
How the markets moved today
The S&P 500 slipped 0.22% to finish Monday at 7,110, while the Nasdaq Composite declined 0.26% to close at 24,404. Among other industrial metals & mining names, industry peers MP Materials closed at $66.23, up 8.59%, and Lithium Americas finished at $4.98, up 2.89%, as rare-earth supply-chain themes drew interest.
What this means for investors
USA Rare Earth acquired Serra Verde today for $300 million in cash and roughly $2.5 billion in stock, and the market loved the news. USAR management stated that the deal “accelerates USAR’s fully-integrated mine-to-magnet value chain, creating a global leader with best-in-class capabilities across mining, processing, separation, metallization, and magnet making.”
CEO Barbara Humpton explained that Serra Verde is “the only producer outside Asia capable of supplying all four magnetic rare-earth (neodymium, praseodymium, dysprosium, and terbium) at scale.” The company believes it can generate $1.8 billion in EBITDA by 2030, but the stock remains a high-risk, high-reward investment that only began generating revenue last quarter.
Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.
