U.S. Commerce Department to Acquire USD1.6B Stake in USA Rare Earth
Through a letter of intent, the Commerce Department extended USA Rare Earth $277 million in federal capital plus a $1.3 billion loan sourced from the CHIPS Act.
The department will receive 17.6 million warrants alongside 16.1 million common stock shares from USA Rare Earth. The arrangement remains contingent on finalized agreements and regulatory approvals.
"In conjunction with this announcement, USAR has raised a common stock PIPE in the amount of $1.5 billion anchored by Inflection Point with participation from large mutual fund complexes," it said.
"USA Rare Earth's heavy critical minerals project is essential to restoring U.S. critical mineral independence," said Commerce Secretary Howard Lutnick. "This investment ensures our supply chains are resilient and no longer reliant on foreign nations."
USA Rare Earth shares rocketed over 16% during Monday's premarket session following the revelation.
The Trump administration's investment will fund USA Rare Earth's blueprint to extract resources at the Round Top rare earth deposit in Texas and establish a magnet manufacturing operation in Stillwater, Oklahoma.
Seeking to diminish dependence on China, the Trump administration has positioned Western supply chain development for critical minerals and rare earths as a cornerstone objective within its industrial strategy.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
