US rare earth company USAR rebounds over 10% ahead of earnings, with $1.6 billion in government support and a 4,000-ton capacity target as tonight's focus.

November 9 - U.S. rare earth company USA Rare Earth (USAR) will release its third-quarter financial report after the U.S. stock market closes tonight. The company's stock price previously hit a 52-week low of $6.84 on November 5, then rebounded 10.85% on November 6 to close at $8.23, but still fell about 14.5% cumulatively over the past week.

This rebound occurred as the United States renewed its focus on rare earth supply security. The Office of the United States Trade Representative said on November 6 that the U.S. side, in a call with China, again demanded the implementation of previous commitments involving rare earths and other critical minerals. The construction of a domestic U.S. rare earth supply chain has regained attention, and USAR is also part of this policy backdrop.

On-chain contract prices stabilized, but open interest is still contracting. As of 16:00, the USAR perpetual contract on Hyperliquid was quoted at $8.26, up about 0.43% in the past 24 hours, with a trading volume of about $1.0645 million. In the past 24 hours, the notional open interest value fell from about $1.4798 million to $1.3996 million, a decrease of about 5.4%.

Funding rate data shows that the previous 24 settlement rounds accumulated to a negative 0.0778% on an hourly rate basis; the current reference rate has turned to a positive 0.00432% per hour, and the direction of payment between long and short positions has changed.

Among large accounts, the largest short account 0x7dde still holds a USAR short position worth about $274,300, with an average entry price of $14.58 and unrealized profit of about $209,400; the largest long account 0x8aa0 holds a position worth about $72,200, with an average price of $13.26 and unrealized loss of about $43,600. Neither adjusted positions in the past 24 hours.

On the news front, USAR previously signed a government support arrangement with the U.S. Department of Commerce worth up to about $1.6 billion, including $277 million in federal funds and a loan facility of up to $1.3 billion, with disbursement tied to project construction milestones. The company's second-quarter revenue was about $5.8 million, net operating cash outflow was about $56.87 million, and its cash balance was about $1.53 billion.

This government support had also previously drawn attention from Democratic lawmakers. In July, multiple lawmakers launched an investigation into potential conflicts of interest involving Cantor Fitzgerald and Commerce Secretary Lutnick's family in the transaction.

Another key point is the company's acquisition of Brazil's Serra Verde. USAR completed the transaction in September and had previously set a target of achieving annualized output of about 4,000 tonnes of rare earth oxides by the end of the year. This earnings report will update revenue contribution after the acquisition, capacity ramp-up, cash burn, and progress on government funding disbursement.

Additionally, the earnings conference call is scheduled for 05:30 Beijing Time on November 10.