Stillwater, Oklahoma — The Trump administration is taking a 10% ownership stake in USA Rare Earth as part of a $1.6 billion debt-and-equity investment aimed at strengthening domestic supply chains and reducing U.S. dependence on China for critical minerals, according to sources familiar with the deal.
The investment, expected to be formally announced Monday alongside a separate $1 billion private financing, will give Washington 16.1 million shares in the Oklahoma-based company and warrants for an additional 17.6 million shares, both priced at $17.17 per share. The move reflects a broader administration strategy to onshore production of rare earth elements essential to national defense, clean energy technologies, semiconductors, and artificial intelligence.
China currently dominates global rare earth processing, a vulnerability U.S. officials have sought to address through direct government involvement in mining and materials projects. A Commerce Department official said the deal aligns with ongoing efforts to secure supply chains critical to advanced manufacturing and defense readiness.
USA Rare Earth is developing a mine in Sierra Blanca, Texas, in partnership with Texas Mineral Resources, expected to open by 2028. The company is also building a neodymium magnet manufacturing facility in Stillwater, Oklahoma, projected to begin commercial production in the first half of 2026. The company’s current market capitalization is estimated at approximately $3.45 billion.
Cantor Fitzgerald, chaired by Brandon Lutnick, is assisting with efforts to raise additional private capital. The deal follows earlier Trump administration equity stakes in MP Materials, Lithium Americas, and Trilogy Metals, signaling continued federal involvement in the critical minerals sector.
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