It's time for the latest edition of which mining company will the Trump administration partner with next. In today's episode, it seems less likely that rare earth stock USA Rare Earth (USAR -2.93%) will be one of the upcoming winners -- much to the chagrin of investors, as the Trump administration seems more interested in signing another metals stock to its dance card.
As of 12:30 p.m. ET, shares of USA Rare Earth are down 1.3%, recovering a bit from their earlier slide of 12.8%.
Image source: Getty Images.
It's not only rare earths on the White House's radar
Australian company Nova Minerals (NVA 110.69%) announced today that it has been asked to provide a report on its Estelle Gold and Critical Metals Project, a mineral deposit located in Alaska that contains gold and antimony, in advance of President Trump's upcoming meeting with the Australian prime minister.
Like rare earths, the United States is highly reliant on China for antimony. Listed on the U.S. Geological Survey's Draft List of Critical Minerals, antimony is used in a variety of applications essential to the nation's defense, including military equipment and semiconductors.
After the Trump administration issued executive orders regarding shoring up the domestic supply of rare earths and entered into a partnership with rare earth producer MP Materials (MP 3.84%), investors have speculated that USA Rare Earth would soon receive an equity investment from the U.S. government. Today, however, investors are finding that it's not only rare earths where the administration's attention is focused.
Should investors buy USA Rare Earth stock on the dip?
While an equity investment from the U.S. government could be interpreted as a positive sign, it's certainly not the only validation that a mining company needs to suggest its stock is a buy. Even if the White House chooses to pass over USA Rare Earth as a partner, there are plenty of reasons to believe that the company will thrive in the coming years as it develops its rare earth magnet production facility.
