Jefferies Financial Group Inc. supports the U.S. rare earth company USA Rare Earth (USAR.US): A vertically integrated platform is emerging, rating it as "Buy."

Jefferies Financial Group Inc. has initiated coverage of USA Rare Earth (USAR.US), assigning a "Buy" rating with a target price of $21. The firm anticipates that long-term demand for rare earth materials will be robust and accelerate, while the integration of Serra Verde and the increased production from the Round Top project will support the companys growth into a vertically integrated battery manufacturer. Analysts at Jefferies Financial Group Inc., led by Lawrence Alexander's, Inc., believe that USA Rare Earth is establishing a vertically integrated "mine-to-magnet" rare earth elements and permanent magnets platform that is independent of the Chinese supply chain, with operations spanning mining, processing, metal smelting, and magnet manufacturing. Alexander's, Inc. pointed out that the company's recent focus is on increasing the annual production of magnets at its Stillwater, Oklahoma plant to approximately 1,200 tons by early 2027, followed by the integration of Serra Verde currently the only ion-adsorption clay rare earth producer outside of Asia, and the only company outside Asia capable of commercially producing all four major rare earth magnet raw materials. Jefferies Financial Group Inc. has also initiated coverage of several advanced materials and energy efficiency solutions-related companies, stating that the growth in electrification, artificial intelligence, and defense and aerospace investments is creating rigid demand while also leading to a series of supply bottlenecks in critical minerals. Alexander's, Inc. has assigned a new "Buy" rating to Almonty Industries (ALM.US), Element Solutions (ESI.US), IperionX (IPX.US), and Materion (MTRN.US), while assigning "Hold" ratings to Fireweed Metals (FWEDF.US), NioCorp Developments (NB.US), and Standard Lithium (SLI.US).