Rare Earth Magnets

USA Rare Earth (USAR) announced its preliminary inclusion in the Russell 2000 Index, according to the FTSE Russell Preliminary List of IPO Additions. The inclusion is projected to take effect on December 22, 2025, pending the completion of FTSE Russell’s standard review procedures. Membership will also include USAR in the Russell 3000 Index and style indexes. Russell indexes are widely used by investment managers and as the basis for index-linked investment products.

China’s rare earth magnet exports to the US saw a significant 28.7% drop in September, signaling potential trade escalations. Stricter export license enforcement in China and its dominance in global rare earth production (90%) raise concerns about US supply chain vulnerabilities. This decline prompts US and allied initiatives to diversify rare earth sources, including a US-Australia minerals agreement and the Noveon Magnetics-Lynas Rare Earths partnership. Building a comprehensive, competitive rare earth magnet industry, however, requires significant investment and technological advancement.