Highlights

• CNBC's Jim Cramer cautioned investors to avoid USA Rare Earth (USAR) for now, citing the company's unproven refining technology and lack of operational track record compared to peers like MP Materials.
• USAR stock trades at $19.42 with extreme volatility—ranging from $5.56 to $43.98 over 52 weeks—driven more by policy headlines and sentiment than operational fundamentals or commercial throughput.
• The Round Top project faces low-grade geology and costly technical complexity, while the broader U.S. rare-earth supply chain remains dependent on Chinese refining infrastructure despite political rhetoric.

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On CNBC’s Mad Money Lightning Round, Jim Cramer didn’t mince words when asked about USA Rare Earth (USAR). “Avoid—for now,” the television host cautioned. While quick to praise uranium player Centrus Energy Corp. (NYSE: LEU) and retail chain Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI), Cramer’s hesitation around USAR comes at a delicate moment for the U.S. rare-earth sector.

The Reality Beneath the Rhetoric

USAR’s acquisition of the Round Top project in Texas was once heralded as a geopolitical hedge against Chinese dominance. Yet, while the deposit’s geology offers a broad spectrum of rare earths, it is low in grade and high in technical complexity, requiring costly beneficiation. The company’s pilot plant and magnet manufacturing ambitions remain promising but unproven at scale.

Analysts also note the company’s refining technology risk — a critical bottleneck in the West’s race to develop independent supply. Unlike peers such as MP Materials Corp. (MP), which have operational track records, USA Rare Earth is still in the validation stage. Cramer’s “stay away” sentiment echoes a broader market unease: until U.S. players demonstrate feedstock stability, separation efficiency, and environmental compliance, Wall Street skepticism will linger.

Stock Snapshot: Price & Momentum

As of the latest publicly available data, USAR shares recently closed at approximately US$19.68. Over the past month, the company experienced notable volatility: shares soared to mid-$20s and beyond, with mid-October intraday jumps of more than 10%, then retraced as trade-and-policy headlines unsettled the rare-earth complex. The 52-week trading range spans roughly US$5.56 to US$43.98. While the recent trading price is far below the highs, the magnitude of movement underscores how sentiment, policy shifts, and supply-chain headlines are driving the stock’s behavior.

Beyond the Broadcast

Cramer’s remarks arrive as investors increasingly differentiate between rhetoric and execution in the rare-earth race. For U.S. industrial policy, USA Rare Earth’s challenges underscore a broader truth: the United States has yet to field a fully integrated rare-earth value chain. The West still depends — technically and financially — on Chinese and Southeast Asian refining ecosystems. Not helping the situation is Washington DC messaging that the U.S. is out of the supply chain crisis next year.

Cramer’s Hesitation Isn’t Mere Theatrics

It’s a reflection of what markets already know: the U.S. rare-earth dream remains under construction. Until USA Rare Earth can prove throughput, yield, and cost-parity with established producers, investors are wise to keep their powder dry. And as REEx has conveyed continuously, President Trump will need to double down on critical mineral and rare earth industrial policy actions.

USA Rare Earth Inc. (USAR)

• $19.42 (as of time of this article)
• -$0.26(-1.32%) Today
• Open: 19.91
• Volume: 4.6M
• Day Low: 18.87
• Day High: 20.37
• Year Low: 5.56
• Year High: 43.98

Here’s an updated snapshot of USA Rare Earth Inc. (NASDAQ: USAR) — incorporating price performance, recent trading dynamics, and what these movements might signal for rare-earth investors.

Price & Performance in Focus

• Current quoted price: ~US$19.42 per share.
• The 52-week trading range is approximately US$5.56 (low) to US$43.98 (high).
• Over the past month the stock has exhibited heightened volatility: one data vendor shows a monthly gain of ~ +24.68% (per FINVIZ) but also large swings tied to headlines.

What the Chart Tells Us

• The upward momentum in early October suggests that investors responded to positive rare-earth headlines (for example, U.S.–China tensions or government-backed critical minerals initiatives).
• Conversely, pullbacks in mid-October indicate risk events (lack of immediate government contract updates, supply-chain headwinds) triggered sell-offs.
• Overall, the stock sits well below its 52-week high, which suggests either a contraction of investor expectations or that many of the bullish narratives have been priced in (and then reversed) already.

Interpretation for Investors

• The current price level reflects a significant speculative premium built on future potential (U.S. rare-earth supply chain, magnet manufacturing, strategic policy tailwinds). Still, the actual operating fundamentals remain unproven (as discussed previously).
• The wide range between the recent lows and highs underscores USAR's sensitivity to policy/regime shifts, rather than purely operational value creation.
• For institutional or retail investors, this means risk profile remains high: large upside remains possible if breakthroughs occur, but downside is notable if milestones are missed or optimism fades.

Summary

USAR’s recent price action reinforces our earlier view: the company is trading more on narrative and sentiment than on established commercial throughput or refining success. The chart’s swings reflect headline-driven momentum rather than consistent fundamentals. Until USAR delivers credible production metrics, refined technology validation, and clarity on offtake, investors should maintain a cautious stance. As REEx has reiterated, the industry outside of China also needs a more intensive infusion of critical mineral and rare earth industrial policy.

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