USA Rare Earth (NASDAQ: USAR) is looking to fill a hole in the market born out of geopolitical uncertainty. Along with mining companies like MP Materials (NYSE: MP), USA Rare Earth is aiding the United States in loosening China’s chokehold on rare earth elements (REEs). China controls the majority of the world’s REE mines, and 94% of permanent magnet production—the vital end product of REEs.
This is a pressing issue, as permanent magnets are essential to building many modern-day technologies. This includes advanced weaponry, and the United States does not want to find itself in a position where China can cut off its production capabilities.
