USA Rare Earth Secures $3.1 Billion in Funding for Mine-to-Magnet Operations
USA Rare Earth (USAR) shares surged 7.9% to close at $26.72 after announcing $3.1 billion in combined government and private funding. The stock hit an intraday high of $32.07 with trading volume spiking 439% to 121.6 million shares.
The funding package includes $1.6 billion from the U.S. CHIPS Program ($277 million grant + $1.3 billion loan) and a $1.5 billion private placement at $21.50/share. The deals could give the government 8-16% ownership through 16.1 million shares and 17.6 million warrants.
Proceeds will accelerate development of the Round Top, Texas facility, with production targets set for 2028. The mine-to-magnet strategy positions USAR as a critical supplier for defense and tech applications amid growing rare earth supply chain concerns.
