USA Rare Earth (USAR) Stock Is Volatile Wednesday: What's Going On?

USA Rare Earth Inc (NASDAQ:USAR) stock has given up its earlier gains on Wednesday, retreating into negative territory despite a major operational announcement that initially sent shares higher.

The volatility follows news that the company is significantly accelerating the timeline for its Round Top heavy rare earth deposit in Texas. Here’s what investors need to know.

• USA Rare Earth stock is taking a hit today. What’s behind USAR decline?

What To Know: On Wednesday, USAR announced plans to begin commercial production at Round Top in late 2028, two years ahead of its previous schedule. The site, a cornerstone of the company's “mine-to-magnet” strategy, is the largest known U.S. deposit of heavy rare earth elements.

CEO Barbara Humpton highlighted the accelerated timeline as a critical move to secure domestic supply chains amid rising geopolitical risks.

This announcement builds on momentum from last week, when USAR subsidiary Less Common Metals signed a supply agreement with Solvay and Arnold Magnetic Technologies. That deal aims to secure non-Chinese feedstock for USAR’s upcoming magnet manufacturing facility in Stillwater, Oklahoma, set to open in the first quarter of 2026.

Despite these positive long-term developments, including expected cost savings from a new parallel-process approach at its Colorado Hydromet facility, the stock failed to hold its morning momentum.

Investors appear to be weighing the accelerated growth narrative against recent volatility, potentially reacting to execution risks or profit-taking following last month’s earnings miss.

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Benzinga Edge Rankings: Benzinga Edge data indicates a divergence in technical sentiment, showing that while USAR maintains a positive Long-Term price trend, its Short-Term and Medium-Term trends are currently rated as negative.

USAR Price Action: USA Rare Earth shares were down 3.66% at $16.87 at the time of publication on Wednesday, according to Benzinga Pro data.

From a technical perspective, the immediate support level appears to be around $16.57, which aligns with the intraday low. If this level fails to hold, the next significant support could be found near the $14.45 mark, corresponding with the 200-day moving average.

On the resistance side, the $18.06 level, where the stock opened, may serve as a barrier to upward movement in the near term.

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