Jefferies backs US rare earth company USA Rare Earth (USAR.US): A vertically integrated platform has surfaced, giving it a “buy” rating

The Zhitong Finance App noticed that Jefferies initiated coverage of the US rare earth company USA Rare Earth (USAR.US) and gave it a “buy” rating, with a target price of 21 dollars.

The bank anticipates strong and accelerated long-term demand for rare earths, and the merger of Serra Verde and increased production of the Round Top (Round Top) project will help the company grow into a vertically integrated battery producer.

Jefferies analysts led by Lawrence Alexander believe that the US Rare Earth Company is building a vertically integrated “mine-to-magnet” (mine-to-magnet) rare earth element and permanent magnet platform independent of China's supply chain. The business spans mining, processing, metal smelting, and magnet manufacturing.

Alexander pointed out that the company's recent focus is to increase the annual magnet production at the Stillwater (Stillwater) plant in Oklahoma to about 1,200 tons in early 2027, and then integrate Serra Verde — the latter is currently the only ionic clay rare earth producer outside of Asia, and the only company outside of Asia that can commercialize all four major rare earth magnet materials.

Jefferies has now launched coverage for a number of companies related to advanced materials and energy efficiency solutions. According to its view, the growth in electrification, artificial intelligence, and defense and aerospace investments is creating rigid demand, while also causing a series of supply bottlenecks in key minerals.

Alexander classified the new ratings for Almonty Industries (ALM.US), Element Solutions (ESI.US), IperionX (IPX.US), and Materion (MTRN.US) as “buy” and “hold” Fireweed Metals (FWEDF.US), NioCorp Developments (NB.US), and Standard Lithium (SLI.US).