(Reuters) -USA Rare Earth shares jumped 10% in premarket trading on Friday, after a report that the mining company's CEO Barbara Humpton said it was in close discussions with the White House.
Humpton was addressing a question about the company's potential interest in striking a deal with the Trump administration, in an interview with CNBC late on Thursday.
USA Rare Earth did not immediately respond to a Reuters request for comment.
U.S. President Donald Trump had invoked emergency powers in March to
boost domestic production of critical minerals as part of a broad effort to offset China's near-total control of the sector.
Earlier this week, the Trump administration took a 5% stake in Lithium Americas and a separate 5% stake in the company's Thacker Pass joint venture with General Motors, which is set to be the largest lithium source in the Western Hemisphere.
MP Materials had also unveiled a multibillion-dollar deal with the U.S. government in July to boost output of rare earth magnets, with the defense department becoming its largest shareholder.
Rare earths are a group of 17 metals used to make magnets that turn power into motion. China had halted exports in March as part of a trade spat with Trump, which showed some signs of easing in June even as broader tensions underscored the need for greater U.S. output.
USA Rare Earth has been developing a mine in Sierra Blanca, Texas and a neo magnet manufacturing facility in Stillwater, Oklahoma, currently planned to go commercial in the first half of 2026.
As of last close, its shares have gained 97.8% so far this year, giving the company a market capitalization of about $2.59 billion.
(Reporting by Pooja Menon in Bengaluru; Editing by Shilpi Majumdar)
