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Monday, Jan 26, 2026
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US Government Plans $1.6bn USA Rare Earth Deal for 10% Stake to Secure Key Minerals
The package pairs an equity position with $1.3bn in senior secured loans structured under the CHIPS and Science Act.
The U.S. government is preparing a $1.6 billion investment package for Oklahoma-based USA Rare Earth, a move slated for announcement on Monday as Washington intensifies efforts to lock in domestic supplies of rare earths and other key minerals.
Under the proposed terms, the government would take a 10% stake in USA Rare Earth, receiving 16.1 million shares and warrants for an additional 17.6 million shares priced at $17.17 each.
The financial package includes $1.3 billion in senior secured loans using the CHIPS and Science Act framework, alongside a requirement that USA Rare Earth secure at least $500 million in private funding tied to the deal.
A separate private financing transaction of roughly $1 billion is also scheduled to be unveiled with the government package, positioning the public investment as a catalyst for broader capital formation around domestic rare earths capacity.
Confirmed vs unclear: What we can confirm is the U.S. plans a $1.6 billion investment package for USA Rare Earth that includes a 10% stake and CHIPS and Science Act-backed lending / What’s still unclear is the exact status and timing of the private funding commitments required to accompany the government package.
USA Rare Earth is valued at about $3.7 billion and is developing a major rare earth mine in Texas while building a magnet factory in Oklahoma, linking upstream mining plans to downstream manufacturing inside the United States.
The stated strategic objective is to reduce reliance on foreign-sourced rare earths that are treated as essential inputs for national security and semiconductor manufacturing, aligning the deal’s design with industrial-policy priorities.
The investment comes as the administration has highlighted critical minerals in broader economic and security messaging, including renewed market attention after President Donald Trump referenced a potential arrangement involving Greenland’s mineral resources, a topic described as separate from the USA Rare Earth transaction.
USA Rare Earth is also working with Cantor Fitzgerald on efforts to raise more than $1 billion in additional financing, while federal agencies including the commerce and defense departments have been active in supporting projects aimed at strengthening the domestic critical minerals supply chain.
Under the proposed terms, the government would take a 10% stake in USA Rare Earth, receiving 16.1 million shares and warrants for an additional 17.6 million shares priced at $17.17 each.
The financial package includes $1.3 billion in senior secured loans using the CHIPS and Science Act framework, alongside a requirement that USA Rare Earth secure at least $500 million in private funding tied to the deal.
A separate private financing transaction of roughly $1 billion is also scheduled to be unveiled with the government package, positioning the public investment as a catalyst for broader capital formation around domestic rare earths capacity.
Confirmed vs unclear: What we can confirm is the U.S. plans a $1.6 billion investment package for USA Rare Earth that includes a 10% stake and CHIPS and Science Act-backed lending / What’s still unclear is the exact status and timing of the private funding commitments required to accompany the government package.
USA Rare Earth is valued at about $3.7 billion and is developing a major rare earth mine in Texas while building a magnet factory in Oklahoma, linking upstream mining plans to downstream manufacturing inside the United States.
The stated strategic objective is to reduce reliance on foreign-sourced rare earths that are treated as essential inputs for national security and semiconductor manufacturing, aligning the deal’s design with industrial-policy priorities.
The investment comes as the administration has highlighted critical minerals in broader economic and security messaging, including renewed market attention after President Donald Trump referenced a potential arrangement involving Greenland’s mineral resources, a topic described as separate from the USA Rare Earth transaction.
USA Rare Earth is also working with Cantor Fitzgerald on efforts to raise more than $1 billion in additional financing, while federal agencies including the commerce and defense departments have been active in supporting projects aimed at strengthening the domestic critical minerals supply chain.
