Insiders Buy USA Rare Earth as Supply Chains and Policy Align

In the fast-evolving world of critical minerals, USA Rare Earth Inc. (USAR:US) stands out as a key player focused on building a domestic supply chain for rare earth elements and magnets. Founded in 2019 and headquartered in Stillwater, Oklahoma, the company is developing a neodymium-iron-boron (NdFeB) magnet manufacturing plant in the area while holding mining rights to the Round Top heavy rare earth and critical minerals deposit in West Texas. As of late January 2026, USA Rare Earth's market capitalization hovers around $3.3 billion.

Recent Insider Trades Signal Confidence

On January 29, 2026, two notable insiders made significant purchases of USAR common stock, underscoring optimism about the company's trajectory. Michael Blitzer, Chairman of the Board, acquired 100,000 shares at an average price of $21.439 per share, totaling approximately $2.144 million. This buy increased his direct holdings to 847,500 shares. 

Meanwhile, Independent Director Carolyn Luther Trabuco purchased 1,300 shares at $22.599 each, for a total of about $29,338, marking her initial stake in the company at 1,300 shares. 

Notably, these appear to be the first significant insider buys, contrasting with prior activity that included more sales and adjustments. Such moves often suggest that leadership believes the stock's current price doesn't fully reflect the company's long-term value, especially in a sector buoyed by policy tailwinds.

Global News and Financial Boosts

The timing of these insider buys aligns with a surge in global attention on rare earth metals, driven by trade tensions, policy shifts, and market dynamics. On the global front, China's ongoing export restrictions, tightened since 2025, continue to disrupt supply chains, leading to anticipated bottlenecks and higher prices for key rare earths used in high-tech applications. This has prompted the U.S. and allies to explore pricing mechanisms, such as minimum import prices or coordinated floors, to stabilize markets and counter Chinese dominance. The Trump administration has amplified this push, emphasizing national security and reducing reliance on adversarial suppliers. Recent proclamations highlight U.S. import dependencies, with 100% reliance on foreign sources for 12 critical minerals, fueling calls for domestic production.

Financially, USA Rare Earth has secured game-changing support. On January 26, 2026, the company announced a non-binding letter of intent with the U.S. Department of Commerce's CHIPS Program for $1.6 billion in incentives, including $277 million in federal funding and a $1.3 billion senior secured loan. This is paired with a $1.5 billion private investment in public equity (PIPE) financing, anchored by major investors and closing on January 29. The funds will accelerate the Round Top mine development and Stillwater magnet plant, aiming for initial magnet production in Q1 2026 and full mining operations by late 2028. Additional partnerships, including with Fluor and WSP for engineering and French government support for European expansion, further bolster the outlook.

These insider buys, set against a backdrop of U.S. government support and global supply pressures, highlight USA Rare Earth as a compelling story in the critical minerals space. While risks like project delays and market volatility persist, the alignment of policy, funding, and internal confidence could drive meaningful upside for patient investors.