The Trump administration is acquiring about 10% of USA Rare Earth in a $1.6 billion package to finance a U.S. mine and magnet plant.
The Trump administration is taking a roughly 10% equity stake in USA Rare Earth as part of a $1.6 billion debt-and-equity package intended to help fund a domestic rare earth mine and a magnet manufacturing facility.
Officials and company sources said the package will be announced Monday alongside a separate $1 billion private investment, and USA Rare Earth plans an investor call to outline terms.
Under the deal, the U.S. will receive 16.1 million shares plus warrants for an additional 17.6 million shares, both priced at about $17.17 per share. The White House and USA Rare Earth did not provide immediate comment.
The move comes amid a broader U.S. push to diversify supply of rare earths—17 critical minerals used in electronics, defense systems and AI hardware—where China remains the dominant processor. USA Rare Earth is developing a mine at Sierra Blanca, Texas, with a target opening around 2028, and a magnet plant in Stillwater, Oklahoma, expected to start later this year.
This investment follows prior federal stakes in domestic miners and reflects an administration strategy to accelerate production of lithium, rare earths and other critical minerals. USA Rare Earth has retained Cantor Fitzgerald to assist with fundraising.