Why USA Rare Earth Stock Rocketed Higher Today

Key Points

• USA Rare Earth is developing a rare earth magnet production facility in Oklahoma.

• Management reported strong interest from potential customers.

• USA Rare Earth announced it had signed a memorandum of understanding with Enduro today.

• 10 stocks we like better than USA Rare Earth ›

Bouncing back from a 5% decline yesterday, shares of USA Rare Earth (NASDAQ: USAR) are racing higher this morning. In addition to the company's reporting of second-quarter 2025 financial results yesterday after the market closed, investors are clicking the buy button on the rare earth stock after the company reported today the signing of a memorandum of understanding (MOU).

As of 10:08 a.m. ET, shares of USA Rare Earth are up 23.2%.

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Digging into the rare earth producer's Q2 2025 financial results

Because USA Rare Earth is still in the pre-revenue phase of its development, investors don't have a lot in the way of financial metrics to examine for the recently completed quarter. But that doesn't mean management hasn't shared other exciting tidbits.

USA Rare Earth confirmed that operations at its rare earth magnet production facility in Oklahoma are still scheduled to commence in Q1 2026. Plus, the company reported that it's receiving strong interest from potential customers.

Joshua Ballard, USA Rare Earth's CEO, stated in the company's press release, "With a dozen initial signed agreements and active engagements with over 70 companies across multiple high-growth industries, we have the potential to sell out our first 1,200-ton production line prior to commissioning its full capacity."

Furthermore, the company announced today that it had signed an MOU with Enduro Pipeline Services, a provider of pipeline cleaning and inline inspection tools, for delivery of the company's rare earth magnets -- the latest of several agreements the company has inked recently for rare earth magnets to be produced in Oklahoma.

Is USA Rare Earth stock a buy now?

It's unsurprising that investors are eager to power their portfolios with USA Rare Earth stock as the company continues its progress toward commencing rare earth magnet production in 2026 since there are few metals companies in the U.S.

Potential investors should exercise caution, however, since the facility is still under construction.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.