U.S. Rare Earths Corporation (USAR) saw its share price jump more than 80% in the first half of 2026, driven primarily by a series of favorable developments including a factory partnership in France, substantial financial backing from U.S. federal and private sources, analyst price-target upgrades, a production milestone for rare earth metals at its U.K. facility, and the acquisition of Serra Verde Group.
This strong performance stands in sharp contrast to 2025, when the company’s stock edged up just 3.7%, significantly underperforming the S&P 500’s 16.4% gain. Entering 2026, analysts continued to hold a positive view on the stock, and as the company made steady progress toward commercial operations, investors actively accumulated shares over the past several months.
Market enthusiasm quickly intensified at the start of the new year. In January alone, U.S. Rare Earths shares surged more than 88%. The rally was fueled by multiple positive announcements: the company disclosed a partnership with the French government to build a metals and alloys production facility in France, expected to begin operations by the end of 2026; it selected Fluor to assist with the final feasibility study for its Round Top rare earth project in Texas; it signed cooperation letters and agreements with the U.S. Department of Commerce and the Department of Energy, securing approximately $1.6 billion in total federal funding; and it obtained $1.5 billion in private financing from Inflection Point.
Analyst firms also raised their price targets. On January 26, Roth Capital increased its target from $25 to $35, and the following day, Benchmark sharply raised its target from $15 to $45.
Despite the strong start to the year, the stock experienced pullbacks in February and March. However, the downturn did not persist. In April, shares regained upward momentum, driven by key catalysts: the company’s subsidiary successfully cast commercial-grade yttrium, a rare earth metal, at its U.K. plant, which the company hailed as a milestone achievement and one of the few such capabilities outside China. Separately, the company announced a definitive agreement to acquire Serra Verde Group for approximately $2.8 billion. Serra Verde is a large-scale producer of all four magnetic rare earths, including high-value heavy rare earths dysprosium, terbium, and yttrium. Management stated that the acquisition would reduce the company’s risk profile, as Serra Verde is projected to achieve annualized run-rate EBITDA of $550 million to $650 million by the end of 2027.
Despite the strong first-half performance, investors have found little reason for optimism at the beginning of the second half. As of July 14, the share price had fallen more than 20% since June 30. For a speculative stock like U.S. Rare Earths, volatility is to be expected. The company is still constructing a mine in Texas, a costly project that will take several years to complete. It is not yet profitable, and a near-term turnaround to profitability appears unlikely. Nevertheless, the company has advanced its business through an aggressive acquisition strategy, securing materials processing capacity in the U.S. and Europe and recently acquiring an operating rare earth mine in South America. While the company has made notable progress in executing its business plan, its acquisition-driven growth model and continued loss-making status may deter more conservative investors.
