ByTy Roush,
Forbes Staff.
Shares of USA Rare Earth rallied by more than 20% in premarket trading on Monday, after the company announced the Trump administration would acquire a stake in the mining firm following similar deals between the U.S. and other miners over the last year to reduce dependence on China.
USA Rare Earth’s stock surged by 20.5% to just under $30 in premarket trading, following increases of 9% and 17% in the previous two trading sessions.
A rally for the company follows an announcement Monday morning the Commerce Department would provide USA Rare Earth with a $1.6 billion loan and $277 million in federal funding in exchange for 16.1 million shares of common stock.
