U.S. Takes 10% Stake in USA Rare Earth

The Trump administration will acquire about a 10% stake in USA Rare Earth as part of a $1.6 billion debt-and-equity package designed to accelerate domestic rare-earth mining and magnet manufacturing capacity.
A separate $1 billion private investment is expected to be announced alongside the government-backed transaction; USA Rare Earth plans a morning investor call to detail terms.
Under the deal, Washington would receive 16.1 million shares plus warrants for an additional 17.6 million shares, both priced at $17.17 per share, according to people briefed on the arrangement.
Rare earth elements-17 minerals critical to electronics, defense systems and specialty magnets-are currently dominated by Chinese processing. The U.S. produces only limited volumes, prompting recent policy and investment moves to onshore supply chains.
USA Rare Earth is developing the Sierra Blanca mine in Texas with Texas Mineral Resources, targeting production by 2028, and operates a magnet plant in Stillwater, Oklahoma expected to begin output later this year.
The investment follows prior U.S. stakes in other critical-minerals firms and reflects a broader push to secure domestic supply for national security and advanced-technology applications. USA Rare Earth has engaged Cantor Fitzgerald to assist fundraising.