USA Rare Earth experienced an 8% surge in after-hours trading on Thursday following CEO Barbara Humpton’s confirmation that the company maintains active dialogue with the Trump administration. This development occurs within a broader context of increased federal involvement in domestic critical mineral production, as evidenced by recent government equity investments in similar companies within the sector.
Market Response and Stock Performance
The rare earth mining company’s shares demonstrated significant volatility and investor enthusiasm throughout the trading day and beyond. During regular trading hours on Thursday, USA Rare Earth’s stock climbed 23%, followed by an additional 8% increase in extended trading after Humpton’s televised comments. This momentum has contributed to the stock’s remarkable performance year-to-date, with shares nearly doubling in value over the course of 2025.
Strategic Government Engagement
In an interview with CNBC’s Morgan Brennan, CEO Barbara Humpton disclosed that USA Rare Earth maintains close communication channels with the White House. When questioned about the company’s interest in pursuing a potential arrangement with the Trump administration, Humpton confirmed the ongoing dialogue while remaining measured in her response.
“We are in close communication with the administration,” Humpton stated, emphasizing the company’s proactive approach to keeping federal officials apprised of its development plans and strategic initiatives.
Industry Context: Recent Federal Investments
Humpton’s revelation follows a pattern of strategic government investments in the domestic rare earth and critical minerals sector. Earlier this week, the Trump administration acquired a 5% equity stake in Lithium Americas, signaling continued federal interest in securing domestic supply chains for essential minerals. This transaction builds upon an earlier move in July, when the Defense Department secured a 15% stake in MP Materials, another rare earth mining operation.
These investments reflect a broader strategic imperative to reduce American dependence on foreign sources of critical minerals, particularly those essential for defense applications, renewable energy technologies, and advanced manufacturing.
Collaborative Industry Vision
Rather than viewing the sector as competitive for limited government support, Humpton articulated a collaborative vision for industry development. She characterized the rare earth supply chain as an expansive opportunity that will require multiple participants to achieve national objectives.
“This is a field where it will not be a zero sum game,” Humpton explained. “It’s going to take a lot of players to build out this marketplace.”
The CEO expressed explicit support for the administration’s recent deals with MP Materials and Lithium Americas, suggesting a cooperative rather than competitive dynamic among rare earth producers seeking to establish robust domestic supply chains.
USA Rare Earth’s Development Projects
The company is currently advancing two critical facilities that represent key nodes in the rare earth value chain. In Sierra Blanca, Texas, USA Rare Earth is developing a mining operation designed to extract rare earth elements from domestic deposits. Complementing this upstream activity, the company is establishing a magnet production facility in Stillwater, Oklahoma, which will process rare earth materials into finished products essential for various industrial and defense applications.
These parallel developments position USA Rare Earth to capture value across multiple stages of the rare earth supply chain, from extraction through processing to final product manufacturing.
Strategic Communication Approach
Humpton emphasized that the company’s engagement with the administration centers on transparency regarding its operational plans and development timeline. “What we’re doing is keeping the administration informed of our own plans,” she noted, suggesting a strategy focused on demonstrating capability and readiness rather than actively lobbying for immediate government investment.
Implications and Outlook
The market’s enthusiastic response to confirmation of White House discussions underscores investor confidence that USA Rare Earth may become the next beneficiary of federal support for domestic critical mineral production. The company’s dual-facility approach, combined with demonstrated progress on both projects, positions it as a credible candidate for potential government partnership.
As the Trump administration continues to prioritize supply chain security and domestic mineral production, companies like USA Rare Earth that can demonstrate operational capability and strategic alignment with national security objectives may find themselves well-positioned for federal support. The sector’s expansion appears designed to create redundancy and resilience in critical mineral supply chains, with room for multiple successful participants in what Humpton describes as a non-zero-sum industry landscape.
