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I’m not going to go over the entire process of the US taking over Venezuela and the kidnapping of Maduro. The primary reasoning for this paper is to explain the effects of this event on Chinese tensions with the US and why this could (and probably will) affect Rare Earth minerals.
The Chinese have been making deals with Venezuela for years now trying to get stronger relations to the country. Why? Because Venezuela has massive reserves of oil and Rare Earth Minerals. China sucks up 90% of Venezuelan oil and has spent over $60 billion to create infrastructure to extract crude oil. In addition, the Chinese have billions in Loans-For-Oil and all of this will be gone simply because the US took it.
In October this year, we saw Rare Earth Mineral related stocks surge 50%+ in a day for two weeks. These smaller cap mining and magnet producing companies could benefit from this. The reasoning these companies fell back to their original price was because of the “truce” with China. But this “truce” was never officially declared, and the Chinese have been banning US Defense companies, certain Rare Earths, and even silver (which is a whole different conversation and its worth knowing about).
China can simply Ban exports of Rare Earth Minerals again as leverage if the United Sates doesn’t budge with Venezuela. This could affect the United States since we don’t really have magnet producing facilities other than MP Materials and USAR.
USA Rare Earth (USAR) has the possibility to thrive in this environment with geopolitical tensions, potential news of the Stillwater magnet facility opening for commercial magnet production next week, and the high possibility of a huge partnership with Siemens at the CES 2026 meeting in Las Vegas next week!
The CEO of USAR is [Barbara Humpton.](https://www.linkedin.com/in/barbara-humpton/overlay/about-this-profile/) ([https://www.linkedin.com/in/barbara-humpton/](https://www.linkedin.com/in/barbara-humpton/)) She was the CEO of Siemens for 7 years! Siemens is a multibillion-dollar company that is one of the largest consumers of magnets. USAR is a magnet producing company that is supposed to be fully commercial by next week. She also worked for Lockheed Martin as Vice President and Director and is on the Federal Reserve Board.
Here is a list of firms that have recently increased their positions, opened new stakes, or held major positions in USAR (USA Rare Earth) within the past month to 45 days.
Major Institutional Shareholders (Top 10)
* Alyeska Investment Group, L.P. (12,799,325 shares)
* Bayshore Capital Advisors, LLC (6,472,082 shares)
* State Street Corp (2,820,689 shares — 1100% increase)
* Driehaus Capital Management LLC (2,305,217 shares — New Position)
* Susquehanna International Group, LLP (2,042,300 shares)
* Citadel Advisors LLC (1,545,243 shares — 3000% increase)
* Jane Street Group, LLC (1,304,500 shares)
* UBS Group AG (1,155,166 shares)
* BlackRock, Inc. (1,050,118 shares)
* Vanguard Group, Inc. (953,198 shares)
High-Conviction & Recent Buyers (Past 30 Days)
* Renaissance Technologies LLC (951,400 shares — New Position)
* Altfest L.J. & Co. Inc. (788,477 shares — New Position)
* Tudor Investment Corp (Paul Tudor Jones) (483,081 shares — New Position)
* Millennium Management LLC (463,392 shares — New Position)
* Morgan Stanley (383,790 shares — 500% increase)
* Bank of America Corp (347,086 shares — 43% increase)
* Schwab Strategic Trust (280,125 shares — New Position)
* Russell Investments Group Ltd. (259,615 shares — New Position)
* JPMorgan Chase & Co. (42,687 shares — Recent Filing)
Mutual Funds & ETFs with High Exposure
* SPDR S&P Metals & Mining ETF (XME) (2,452,716 shares)
* Vanguard Extended Market ETF (621,272 shares)
* Calamos Timpani Small Cap Growth Fund (417,705 shares)
* Fidelity Extended Market Index Fund (308,440 shares)
* Invesco Dorsey Wright Basic Materials ETF (PYZ)
This is not Financial advice, just want to hear what you guys think!