Can USA Rare Earth Stock Beat the Market?

Investors in USA Rare Earth (NASDAQ: USAR) have had a wild ride since the company went public in March, largely due to ongoing speculation about the possibility that the federal government will step in to support or invest in a company that could significantly contribute to ensuring a domestic supply of rare-earth magnets that are critical for U.S. industry. The stock could outperform the market, but here's what you need to know before investing.Typically, mining and materials companies develop their deposits and then build the facilities to process the extracted materials, or do those things concurrently. However, USA Rare Earth is taking a somewhat unusual approach. Its ultimate plan is to operate on a "mine to magnet" basis. However, it's constructing a magnet-producing facility in Stillwater, Oklahoma, before proceeding with the development of its Round Top deposit in Texas.According to a recent press release, "Round Top is the United States' richest known deposit of heavy rare earth elements, gallium, and beryllium," and management plans to begin commercial development of it in late 2028. Meanwhile, the company plans to have the Stillwater plant commissioned and ready to commercially produce magnets in 2026. For reference, gallium is not a rare-earth metal, but is used in semiconductors critical for high-speed/high-frequency applications, and beryllium (also not a rare-earth metal) is often used in structural components in space and defense technologies.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool