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Commerce Department Invests $1.6 Billion in USA Rare Earth

1/27/2026, 5:03:37 PM | United States

Military & Defense

The Commerce Department is investing $1.6 billion for a 10% stake in USA Rare Earth to expand U.S. rare-earth production and supply chains.

The U.S. Commerce Department will invest $1.6 billion in Oklahoma-based USA Rare Earth and acquire a 10% equity stake to help scale domestic production of strategic metals.

The capital injection is one of the largest federal commitments to date in the critical-minerals sector under the current administration. USA Rare Earth operates an open-pit mining and processing project in Oklahoma and plans to expand output of rare-earth elements used in defense systems, renewable energy technologies and advanced manufacturing.

The funding is structured alongside private investment to accelerate permitting, build processing and downstream capacity, and reduce reliance on foreign supply chains. Officials framed the move as a national-security and industrial policy measure to spur domestic supply and manufacturing of critical minerals. Specific timelines, project milestones and the identities of private co-investors were not disclosed.

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