economy

January 26, 2026

USA Rare Earth shares rally as Commerce Department takes equity stake

The capital infusion will help USA Rare Earth advance its plan for a magnet manufacturing plant and a mine at a rare earth deposit in Texas called Round Top.

USA Rare Earth shares rally as Commerce Department takes equity stake

TL;DR

  • The Department of Commerce will take an equity stake in USA Rare Earths.
  • The deal includes a $1.3 billion loan and $277 million in federal funding.
  • USA Rare Earths will issue shares and warrants to the U.S. government, potentially resulting in an 8% to 16% stake.
  • The company will also raise $1.5 billion from private investors.
  • Funds will support the construction of a magnet manufacturing plant in Oklahoma and a mine in Texas.
  • The investment is part of a broader U.S. strategy to reduce dependence on China for critical minerals.
  • The company needs to meet several conditions to finalize the agreement, including raising additional capital and securing supply agreements.

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