Trump Admin To Acquire Stake In USA Rare Earth For $1.6 Billion: Report

The Trump administration is readying to put $1.6 cardinal successful USA Rare Earth Inc. (NASDAQ:USAR), marking its biggest concern successful the sector.

The U.S. authorities volition get a 10% involvement successful the Oklahoma-based miner, which holds important U.S. deposits of dense uncommon earths. This determination is portion of Washington’s strategy to unafraid indispensable mineral supplies, arsenic reported by the Financial Times connected Friday.

The investment, on with a $1 cardinal backstage financing deal, is anticipated to beryllium announced connected Monday. The authorities volition person 16.1 cardinal shares and warrants for an further 17.6 cardinal shares astatine $17.17 each, according to the report.

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Additionally, USA Rare Earth volition summation $1.3 cardinal successful elder secured indebtedness financing from the government, sourced from a concern installation nether the CHIPS and Science Act of 2022. A commerce section authoritative confirmed the transaction was completed straight with the company.

USA Rare Earth, valued astatine $3.7 billion, is processing a important excavation successful Sierra Blanca, Texas, and plans a magnet accumulation installation successful Stillwater, Oklahoma. The Commerce Department and defence section person collaborated to heighten home uncommon world production.

This concern is portion of a broader strategy by the Trump medication to unafraid captious proviso chains for indispensable resources.

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The medication has antecedently acquired stakes successful respective companies, including a 10% involvement successful Intel Corp. (NASDAQ:INTC) and a 15% involvement successful MP Materials Corp. (NYSE:MP), arsenic portion of its nationalist information strategy. These moves purpose to trim reliance connected overseas nations, peculiarly China, for cardinal resources.

In August 2025, the medication converted CHIPS Act grants into a $5.7 cardinal equity involvement successful Intel.

The administration’s investments, totaling implicit $10 billion, span sectors specified arsenic steel, minerals, atomic energy, and semiconductors.

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