US Government Takes Equity Stake in USA Rare Earth to Back Western Supply Chain

The Commerce Department plans a $1.3 billion loan and $277 million in federal funding to USA Rare Earth, in exchange for 16.1 million shares and 17.6 million warrants that would give the government an 8%–16% stake once warrants are exercised. The deal, part of a push to build a Western rare earth supply chain, funds the company’s magnet plant in Stillwater, Oklahoma, and the Round Top mine in Texas, with total project costs around $4.1 billion and about $3.5 billion already secured from cash, private funding, and the government package. Disbursement is 2026–2028 based on milestones, and the agreement is subject to final approvals; the company has already raised $1.5 billion from private investors. Shares rose more than 20% on the news.