The administration of US President Donald Trump is set to acquire a 10% stake in USA Rare Earth as part of a broader $1.6 billion investment package combining debt and equity, in a move aimed at accelerating domestic production of critical minerals and reducing reliance on China, sources familiar with the matter said.
Meanwhile, USA Rare Earth Stock Rises 9.07% to $24.77 after the Trump's administration acquired stake in the company.
The deal, expected to be announced on Monday, will be unveiled alongside a separate $1 billion private investment, underscoring the administration’s growing push into the strategically sensitive rare earths sector.
USA Rare Earth, an Oklahoma-based company, is scheduled to hold a conference call with investors on Monday morning to outline the terms of the transaction, according to one source briefed on the plan.
Rare earth elements, a group of 17 minerals essential for electronics, renewable energy technologies, and military equipment, are currently dominated by China, which is the world’s largest processor of these materials. The United States produces only limited quantities, prompting Washington in recent years to intensify efforts to build a domestic supply chain.
The investment is intended to support the development of a US-based rare earth mine and a magnet manufacturing facility, a critical link in the supply chain often controlled by foreign producers.
USA Rare Earth already owns a magnet manufacturing plant in Stillwater, Oklahoma, which is expected to begin operations later this year.
Under the terms outlined by sources, the US government will receive 16.1 million shares in USA Rare Earth, along with warrants to purchase an additional 17.6 million shares. Each share will be priced at $17.17, roughly in line with the company’s recent trading levels earlier this month.
The transaction marks the latest in a series of moves by the Trump administration to secure stakes in critical minerals companies, following previous investments in firms such as MP Materials, Lithium Americas, and Trilogy Metals.
A senior administration official said last month that more “historic deals” with US mining companies are planned, aimed at boosting production of lithium, rare earths, and other strategic minerals used in national defense, artificial intelligence, and advanced manufacturing.
US stock markets ended Friday’s session mixed, with the Dow Jones Industrial Average down about 0.6%, the S&P 500 roughly flat, and the Nasdaq Composite up around 0.3%.
Sources said USA Rare Earth enlisted Cantor Fitzgerald to help arrange the financing. The firm is led by Brandon Lutnick, the son of US Commerce Secretary Howard Lutnick.
US President Donald Trump
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