---
symbol: "USAR"
name: "USA Rare Earth"
date: 2026-10-23
change_pct: -4.44815724815725
direction: "down"
event_type: "m&a"
url: "https://perplo.app/why/USAR/2026-10-23"
updated_at: 2026-10-23T01:06:40.964Z
---

# Why USA Rare Earth (USAR) fell 4.45% on October 23, 2026

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](https://www.investing.com/news/stock-market-news/exclusivegm-cancels-deal-with-new-us-rareearth-magnet-plant-documents-say-4967695) — 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](https://t.me/marketfeed/1062847) — MarketFeed
- [USA Rare Earth stock hits 52-week low at 9.7 USD](https://www.investing.com/news/company-news/usa-rare-earth-stock-hits-52week-low-at-97-usd-93CH-4966422) — Investing.com

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