Why Shares of USA Rare Earth Are Tanking Today
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By Scott Levine – Dec 15, 2025 at 2:54PM ESTKey PointsThe United States government is working to secure the domestic supply of critical metals.Korea Zinc Co. plans on developing a zinc smelter in the United States.USA Rare Earth should only remain a potential acquisition for investors with high risk tolerances.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: USARUSA Rare EarthMarket Cap$2.3BToday's Changeangle-down(-12.79%) $2.18Current Price$14.86Price as of December 15, 2025 at 3:41 PM ETThe company had no news to report. So what's spooking investors?Starting the week on a bearish foot, both the Dow Jones Industrial Average and S&P 500 are down around 0.15% in afternoon trading. Shares of rare earth miner USA Rare Earth (USAR 12.79%) are also heading lower today -- unrelated to news from the company. While the bearish tone on Wall Street may be partially responsible for the stock's decline, a new partnership announced, involving the United States government, is also contributing to the slide in USA Rare Earth stock. As of 2:50 p.m. ET, shares of USA Rare Earth are down 11.7%. Image source: Getty Images. Another government deal -- another deal that doesn't include USA Rare Earth Investors learned today that the U.S. government is partnering with Korea Zinc Co., which is developing a zinc smelter in the United States. According to Bloomberg, the U.S. is one of several investors contributing about $1.94 billion to help Korea Zinc develop the project. Zinc appears on the U.S. Geological Survey's 2025 List of Critical Minerals. ExpandNASDAQ: USARUSA Rare EarthToday's Change(-12.79%) $-2.18Current Price$14.86Key Data PointsMarket Cap$2.3BDay's Range$14.78 - $17.3952wk Range$5.56 - $43.98Volume181KAvg Vol15M With the issuance of executive orders in May to spur domestic production of rare earths, investors recognized that shoring up the nation's supply of certain critical metals was a priority in President Trump's second term. Trump's interest became increasingly apparent when the U.S. government announced an investment in rare earths producer MP Materials in July.Advertisement After the U.S. inked partnerships with lithium producer Lithium Americas in October and rare-earth magnet producer Vulcan Elements, investors speculated that USA Rare Earth would also soon receive an investment from the U.S. government, like its rare-earth peers. Today, however, investors appear to be losing faith that a deal of this sort is in the cards for the company. Should investors buy the dip on USA Rare Earth stock? While many may be disheartened to find the U.S. partnering -- again -- with a company other than USA Rare Earth, today's news shouldn't disqualify potential investors. With USA Rare Earth nearing completion of a rare earth magnet production facility, investors with sufficient risk tolerances may find today a great time to start positions.About the AuthorScott Levine is a contributing Motley Fool stock market analyst covering energy, industrials, technology, and materials. He is also a high school English teacher and a small business owner. He holds a bachelor’s degree in English and creative writing from Binghamton University, a master’s degree in secondary education from Adelphi University, and an advanced certificate in school building leadership from CUNY Queens College. A crossword puzzle enthusiast, he has solved more than 3,100 New York Times puzzles with a 97% solve rate.TMFProudMonkeyX@TMFProudMonkeyRead NextDec 7, 2025 •By Lee SamahaHere's Why USA Rare Earth Stock Crashed in NovemberDec 5, 2025 •By Courtney CarlsenDown 69% From Its Recent Peak, Is USA Rare Earth Stock a Buy?Dec 4, 2025 •By Rich SmithWhy USA Rare Earth Stock Soared TodayNov 10, 2025 •By Scott LevineThis Is My Biggest Worry About USA Rare Earth StockNov 5, 2025 •By Lee SamahaWhy USA Rare Earth Stock Soared, Slumped, and Ended Up 13% Higher in OctoberNov 3, 2025 •By Scott LevineWhy USA Rare Earth Stock Is Plummeting Today