U.S. Invests $1.6B in Rare Earth Miner Amid Supply Chain Push
The TRUMP administration is injecting $1.6 billion into USA Rare Earth through a combination of equity and debt, marking Washington's latest move to secure critical mineral supply chains. The deal includes a $277 million equity purchase at $17.17 per share—a stake now worth $490 million given the company's current $24.77 stock price—alongside $1.3 billion in secured debt from a Commerce Department facility established under the CHIPS Act.
Officials frame the investment as essential for semiconductor materials and national security, though the Commerce Department remains silent on specifics. Rare earth demand is surging globally, with investors flocking to related assets.