{"id":31747,"date":"2026-01-28T08:33:00","date_gmt":"2026-01-28T04:33:00","guid":{"rendered":"https:\/\/gbc1.net\/?p=31747"},"modified":"2026-02-05T01:32:00","modified_gmt":"2026-02-04T21:32:00","slug":"us-government-approves-1-6b-funding-for-usa-rare-earth","status":"publish","type":"post","link":"https:\/\/gbc1.net\/index.php\/2026\/01\/28\/us-government-approves-1-6b-funding-for-usa-rare-earth\/","title":{"rendered":"US Government Approves $1.6B Funding for USA Rare Earth"},"content":{"rendered":"\n

On 26 January 2026, the USA Rare Earth (NSDQ: USAR) announced that the US Government will invest USD 1.6 billion in the company as part of its efforts to secure and diversify #RareEarths<\/a>. In return, the US Government will get a 10% stake in the venture.<\/p>\n\n\n\n

The funding comes under the #CHIPSAct<\/a>. In addition to a bonified loan of USD 1.3 billion, the Commerce Department will also chip in USD 277 million, bringing the total funding to nearly USD 1.6 billion. “This investment ensures our supply chains are resilient and no longer reliant on foreign nations,” commented Commerce Secretary Howard Lutnick.<\/p>\n\n\n\n

USA Rare Earth holds mining rights in one of the largest known heavy rare earths deposits in North America. The mine is located at the Round Top Mountain in Sierra Blanca, in the western side of the state of Texas, some 80 kilometers from El Paso. Based on exploration, the mine holds high concentrations of dysprosium, terbium, and yttrium, which are essential for semiconductor and aerospace applications, both civil and military. In addition, the mine holds substantial reserves of other #CriticalMinerals<\/a> such as beryllium, gallium, lithium, and zirconium.<\/p>\n\n\n

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USA Rare Earth is a vertically integrated company and is involved across the value chain from extraction, processing to the production of magnets. The company calls it the ‘mine-to-magnet’ strategy in order to build alternative value chains outside the grip of China.<\/p>\n\n\n\n

During 2025, the US Government has also invested in MP Materials and Vulcan Elements to beef up domestic capability in Rare Earth Elements (REE). Trump also declared that he has managed to reach a framework agreement over #CriticalMinerals<\/a> with Greenland.<\/p>\n\n\n\n

As a condition for the federal funding, USA Rare Earth has had to secure private financing. Therefore, it successfully raised USD 500 million on the capital market. The share price of USA Rare Earth rose by 15% at the closing bell on the day of the announcement.<\/p>\n\n\n\n

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