US EditionUS to inject $1.6 billion into rare earths miner for 10% stake, FT reports
The U.S. government will acquire 16.1 million shares and warrants in USA Rare Earth, supporting domestic critical mineral supply chains for defense and technology industries.
- The Financial Times reported on Saturday that the United States government will inject $1.6 billion into USA Rare Earth for a 10% stake, with the investment and a separate $1 billion financing expected on Monday.
- To reduce reliance on China, officials say the administration aims to establish a sovereign 'mine-to-magnet' supply chain securing materials for defense and high-tech industries.
- The financing package includes $1.3 billion in senior secured debt from a Department of Commerce CHIPS finance facility; the government receives 16.1 million shares and 17.6 million warrants at $17.17.
- The investment forms part of broader government equity interventions that may affect investors and market valuations, while it could accelerate U.S. production of rare-earth magnets vital to the U.S. defense sector, electric vehicle and renewable energy industries.
- The move follows prior government stakes such as a roughly six-month-old MP Materials position and CHIPS Act signals last December, with USA Rare Earth expanding via Less Common Metals and the Stillwater, Oklahoma facility.
26 Articles
26 Articles
USA Rare Earth Rockets 17% on Thrilling New Partnership Reveal
Shares of USA Rare Earth (USAR) surged 17% in early trading following the announcement of a strategic new partnership, signaling increased investor confidence in the company’s growth prospects. The collaboration aims to bolster USAR’s position in the critical minerals market, a sector gaining heightened attention amid global supply chain concerns and growing demand for sustainable [...]
The Trump administration plans to invest $1.6 billion in an American rare-earth company, its largest investment in the sector, in Washington's latest initiative to support private industry...
The "Financial Times" reports that Washington wants to join the US Rare Earth company, which would be the Trump administration's fourth raw material investment.
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