USA Rare Earth (USAR) Hits New Record High on China Rare Earths Restriction

We recently published 10 Big Names With Whopping Gains; 6 Jump All-Time Highs. USA Rare Earth, Inc. (NASDAQ:USAR) is one of the best performers on Thursday.

USA Rare Earth jumped to a fresh record high on Thursday, as investor sentiment was fueled by China’s tightened restrictions on the exportation of rare earth minerals.

During the session, USA Rare Earth, Inc. (NASDAQ:USAR) soared to a new 52-week high of $32.59 before trimming gains to end the day just up by 14.99 percent at $31.07 apiece.

This followed announcements from China’s Ministry of Commerce that foreign entities are now obliged to obtain a license for products containing rare earths at least 0.1 percent of the goods’ value, as well as when using their extraction, refining, or magnet recycling technology.

Rare earth minerals are critical in the production of various industries such as semiconductors, automotive, and aerospace, and any move from China to curb exports would significantly disrupt production operations.

However, the curbs stand to benefit US rare earths producers such as USA Rare Earth, Inc. (NASDAQ:USAR), Energy Fuels Inc., MP Materials, Ramaco Resources, and Lithium Americas, among others, as it could push consumers to look elsewhere for supplies.

Additionally, China’s move lifted optimism for USA Rare Earth, Inc. (NASDAQ:USAR), which earlier confirmed that it was in talks with the Trump administration for a potential investment, in a bid to accelerate domestic production of the said minerals.

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Disclosure: None. This article is originally published at Insider Monkey.