USA Rare Earth Drops 5% as Selling Runs Into a Second Day; United States Antimony Falls 4%, MP Materials Dips

Critical metals shares are falling for a second straight session, and USA Rare Earth (NASDAQ:USAR) is taking some of the biggest losses in the group. USA Rare Earth stock is at $12.58, down 5% this afternoon. Selling is concentrated in the names that are still building out their capacity, while the one established producer in this group is holding up far better.

Meanwhile, United States Antimony (NYSEAMERICAN:UAMY) stock is at $3.69, down 4%, a slide nearly as steep as the drop in USA Rare Earth shares. At the same time, MP Materials (NYSE:MP) stock is at $45.89, down 0.9%, a far milder decline than either of its two smaller peers. That gap between the builders and the producer sits at the center of this story.

Fund figures show the selling staying inside the theme. The VanEck Rare Earth and Strategic Metals ETF (NYSEARCA:REMX) is at $60.14, down 3%. By comparison, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is at $772.56, down 0.6%, a much smaller move for the broad market.

Builders Take the Brunt of a Second Day of Selling

Selling has now reached a second straight session. Across critical metals names, the deepest damage is landing on the smaller names still working toward scale. Over the past month, USA Rare Earth stock is down 29%. United States Antimony stock has fallen 29% across that same stretch, another hard run, this time for a much smaller company.

Those monthly losses run deeper than the drop in the sector fund. That is a sharp decline. The VanEck Rare Earth and Strategic Metals ETF is down 21% over the past month, for a basket that spreads its exposure across many miners and processors. With the SPDR S&P 500 ETF Trust only slightly lower, the pressure looks confined to the critical metals theme itself.

Production Gives MP Materials a Cushion

USA Rare Earth is constructing magnet manufacturing and processing capacity, spending well ahead of meaningful revenue. Funding comes from the capital markets, so each raise spreads ownership across more shares even as the plants remain under construction.

MP Materials owns and operates an existing mine and already sells what the company extracts, and that output puts real revenue underneath MP Materials shares, a cushion that USA Rare Earth can’t offer until its plants run.

USA Rare Earth supporters argue that domestic processing capacity barely exists. They add that policy support for building it is real, and that a company this far along in construction is hard to replicate. Skeptics counter that a construction-stage business offers only a schedule until its plants run, and that financing the expansion falls on shareholders in the meantime. A 29% decline in a single month suggests the market is repricing how long that wait for USA Rare Earth could last.

What to Watch Next

USA Rare Earth’s construction progress remains the biggest open question. The question is whether selling across critical metals names eases after two straight down sessions, and whether any new capital raise adds shares before revenue arrives.

Traders will want to see the VanEck Rare Earth and Strategic Metals ETF hold steady, since a calmer sector fund would point to the theme finding its footing. The gap between MP Materials stock and USA Rare Earth shares offers a running read on how much value the market places on existing production.

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