USA Rare Earth Inc. (USAR) stock surged 18.49% in pre-market trading on Friday, following reports that the company is in close communication with the White House. This significant jump reflects growing investor optimism about potential government support for the critical rare earth minerals sector.

The rally was sparked by comments from USA Rare Earth's CEO Barbara Humpton, who told CNBC that the company is "in close communication" with the White House. This revelation comes at a crucial time when the U.S. government is actively seeking to reduce dependence on foreign sources for rare earth elements, which are vital for various high-tech and defense applications.

USA Rare Earth's potential collaboration with the government aligns with recent U.S. initiatives in the rare earth sector. Earlier this week, the Trump administration took a 5% stake in Lithium Americas and its Thacker Pass joint venture with General Motors. In July, the government also entered into a multibillion-dollar deal with MP Materials to boost rare earth magnet production. As USA Rare Earth develops a mine in Texas and a neo magnet manufacturing facility in Oklahoma, it could potentially benefit from similar government support, further strengthening the U.S. domestic rare earth supply chain.