The U.S. government is preparing to invest $1.6 billion in USA Rare Earth, securing a 10% ownership stake in the Oklahoma-based miner, according to a Financial Times report. The investment, along with a separate $1 billion private financing round, is expected to be announced soon.
As part of the deal, Washington would receive 16.1 million shares and warrants for an additional 17.6 million shares, as the administration accelerates efforts to strengthen domestic supply chains for critical minerals and reduce reliance on China.
The move follows similar equity investments in companies such as MP Materials and Lithium Americas.
The agreement is aimed at boosting U.S. production of rare earths and strategic materials vital to semiconductors and national defense. USA Rare Earth is developing a mine in Texas and a magnet manufacturing facility in Oklahoma, which is expected to begin commercial operations in 2026.