USA Rare Earth (USAR) has guided for a wider net loss in its fourth-quarter results, citing increased capital outlays as it accelerates construction at its Stillwater NdFeB magnet plant. Management projects a loss of $0.12–$0.15 per share for the period, compared with a $0.08 loss in Q3, as operating expenses swell by roughly 45% quarter-over-quarter to support commissioning activities ahead of the plant’s expected ramp in mid-2026.

The company’s stock jumped on news that federal policymakers are evaluating an $11.7 billion strategic reserve program that would stockpile rare-earth elements alongside other critical minerals. While the initiative remains in the proposal stage, USAR stands to capture a meaningful share of any future stockpile allocations, given its vertically integrated model covering mining, separation and magnet manufacturing.

USAR secured a nonbinding letter of intent from a U.S. government financing arm for up to $1.6 billion in low-interest loans. The proposed facility would fund expansion of the Round Top mine in Texas and the adjacent Stillwater magnet plant. Final terms are expected by mid-year, with definitive agreements contingent on project milestones including environmental approvals and supply-chain certifications.

Despite the heavier near-term losses, USAR reaffirmed its timeline for commissioning the NdFeB magnet line in Q2 2026. The plant’s initial capacity is slated at 5,000 metric tons of sintered magnets per year, enough to supply roughly 20% of anticipated domestic demand for electric-vehicle drive motors. Further expansions could double capacity by 2028, positioning USAR as a linchpin in the U.S. critical-materials supply chain.