USA Rare Earth Inc. (USAR) saw its stock surge 13.17% 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 the potential for government support in the critical rare earth minerals sector.

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

The news aligns with recent U.S. government 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, with the Department of Defense becoming its largest shareholder.

USA Rare Earth, which has been developing a mine in Texas and a neo magnet manufacturing facility in Oklahoma, could potentially benefit from similar government support. The company's projects are strategically important as the U.S. seeks to establish a domestic rare earth supply chain to counter China's dominance in the sector.

This development comes against the backdrop of broader U.S. efforts to strengthen its critical minerals supply chain. In August, the Department of the Interior proposed an overhaul of its critical minerals list, while the Department of Energy announced plans for nearly $1 billion in funding to scale up mining, processing, and manufacturing of critical minerals and materials.

As geopolitical tensions continue to underscore the need for greater U.S. output of rare earth elements, companies like USA Rare Earth are positioned to play a crucial role in the nation's strategic resource independence. Investors will be closely watching for any official announcements regarding potential partnerships or support from the White House in the coming days.