Trump administration injects $1.6B into USA Rare Earth — government takes 10% stake, $1.3B CHIPS loan

The Trump administration is investing $1.6 billion in USA Rare Earth, marking a major federal push to secure domestic rare-earth supply chains. The package includes a $277 million equity purchase for a 10% stake (16.1 million shares at $17.17 each) plus warrants for 17.6 million shares, and $1.3 billion in senior secured debt funded via a Commerce Department finance facility under the CHIPS and Science Act. The government equity buy represents an immediate implied paper gain versus the company’s current share price. USA Rare Earth, listed and headquartered in Oklahoma, is developing a heavy rare-earth mine in Sierra Blanca, Texas (claims to host 15 of 17 rare earth elements) and a magnet plant in Stillwater, Oklahoma. Separately, USA Rare Earth is raising over $1 billion in private PIPE financing led by Cantor Fitzgerald; the company previously went public with Cantor’s help. The move complements prior federal investments in domestic critical-minerals projects and aligns with an “America First” strategy to onshore materials for defense, semiconductors, and advanced technologies. Shares have surged this year amid increased investor interest in rare earths. Key figures: $1.6B total government support, $277M equity for 10% stake, $1.3B CHIPS-backed debt, Cantor Fitzgerald leading >$1B private raise. Primary keywords: USA Rare Earth, rare earths, CHIPS Act, Cantor Fitzgerald, onshoring, strategic minerals.