Here's Why USA Rare Earth Stock Slumped This Week

Shares in USA Rare Earth (NASDAQ: USAR) declined by more than 20% in the week to Friday at 1:30 p.m. This sort of move, although unwelcome, isn't surprising because this is a stock that trades on sentiment as much as it does on any debate over the long-term fundamentals.The company's peer, MP Materials, received significant government investment and support this year, so why can't USA Rare Earth? After all, the company is on track to start producing rare-earth magnets at its Stillwater, Oklahoma, facility in 2026 using non-China-sourced rare-earth materials. In addition, management recently announced a "significant acceleration of the commercialization timeline for its Round Top heavy rare earth deposit in Texas" with commercial production at the deposit expected to begin in 2028. As such, the company is positioning itself to contribute to the critical need for a domestic supply of rare earth materials and magnets. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool