Trump Admin To Acquire Stake In USA Rare Earth For $1.6 Billion: Report

Group 1 - The Trump administration plans to invest $1.6 billion in USA Rare Earth Inc., marking its largest investment in the sector [1][2] - The U.S. government will acquire a 10% stake in USA Rare Earth, which has significant U.S. deposits of heavy rare earths, as part of a strategy to secure essential mineral supplies [2][5] - The investment includes a $1 billion private financing deal and will provide the government with 16.1 million shares and warrants for an additional 17.6 million shares at $17.17 each [3][4] Group 2 - USA Rare Earth will also receive $1.3 billion in senior secured debt financing from the government, sourced from a finance facility under the CHIPS and Science Act of 2022 [4] - The company, valued at $3.7 billion, is developing a significant mine in Sierra Blanca, Texas, and plans to establish a magnet production facility in Stillwater, Oklahoma [5] - The investment is part of a broader strategy by the Trump administration to secure critical supply chains for essential resources and reduce reliance on foreign nations, particularly China [5][6]