USA Rare Earth Inc. (USAR) experienced a significant after-hours plunge of 9.45% on Wednesday, following a report about potential policy changes affecting the critical minerals sector.
The sharp decline came after exclusive sources revealed that the Trump administration is moving away from implementing price floors for critical minerals projects. Price floors typically provide minimum price guarantees that help stabilize revenue and support the economic viability of such projects, particularly for companies involved in rare earth elements and other strategic materials.
This policy shift suggests reduced government support for the critical minerals industry, which could negatively impact the financial outlook for companies like USA Rare Earth that rely on stable pricing mechanisms to justify their mining and processing investments.
Comments