Why USA Rare Earth (USAR) fell 4.45%
USA Rare Earth (USAR) fell 4.45% on October 23, 2026 — GM scraps magnet deal; USA Rare Earth falls.
What happened
An exclusive report says General Motors cancelled a long-term rare-earth magnet supply deal tied to a new US magnet plant, citing documents.
Why it moved
A lost anchor customer removes the offtake contract that would have de-risked the plant's commercialization, so investors now have to price in a slower path to revenue and a harder funding case.
Why it matters
USA Rare Earth trades within Industrial Metals, where rare-earth scarcity had supported a rally in supply-chain names.
What would break the thesis
The thesis reverses if GM reverses course or another automaker signs a replacement magnet supply agreement for the plant.
Sources
- Exclusive-GM cancels deal with new US rare-earth magnet plant, documents say — Investing.com
- GENERAL MOTORS CANCELLED A LONG-TERM SUPPLY DEAL FOR RARE-EARTH MAGNETS AT A FACTORY DUE TO BE ACQUIRED BY ENERGY FUELS, SEC DOCUMENTS SHOW, WITH PLANT OWNER VACUUMSCHMELZE HAVING FILED FOR ARBITRATION AND SEEKING DAMAGES FROM GM — MarketFeed
- USA Rare Earth stock hits 52-week low at 9.7 USD — Investing.com