US EditionPublished • loading... • Updated
US to inject $1.6 billion into rare earths miner for 10% stake, FT reports
The investment supports building a domestic rare-earth mine-to-magnet supply chain to reduce reliance on China and strengthen U.S. national security and advanced industries.
- On Saturday, the United States plans a $1.6 billion equity injection into Oklahoma-based miner USA Rare Earth for a 10% stake, and the investment plus a $1 billion private deal will be announced on Monday, the Financial Times reported.
- An official in the U.S. Commerce Department's CHIPS office said the deal focuses on onshoring critical minerals essential to semiconductors, while Washington planned more historic deals last year to reduce reliance on China.
- Deal terms include 16.1 million shares and 17.6 million warrants at $17.17, and Cantor Fitzgerald, investment bank chaired by Brandon Lutnick, will lead efforts to raise more than $1 billion.
- USA Rare Earth is developing a mine in Sierra Blanca, Texas and a neo magnet manufacturing facility in Stillwater, Oklahoma expected to go commercial in the first half of 2026 and has a $3.45 billion market capitalization.
- Reuters could not immediately verify the Financial Times report, and the White House and USA Rare Earth did not immediately respond; last year, the administration took stakes in MP Materials, Lithium Americas and Trilogy Metals.
Insights by Ground AI
17 Articles
17 Articles
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...
·Milan, Italy
Read Full Article
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.
·Düsseldorf, Germany
Read Full Article
Coverage Details
Total News Sources17
Leaning Left1Leaning Right5Center5Last UpdatedBias Distribution46% Center, 45% Right
Bias Distribution
- 46% of the sources are Center, 45% of the sources lean Right
46% Center
C 46%
R 45%
Factuality
To view factuality data please Upgrade to Premium
