The U.S. administration under President Donald Trump has announced plans to invest $1.6 billion in the American company USA Rare Earth, marking the largest public investment in the private sector to secure critical mineral supplies.
The initiative involves developing a mine in Texas that contains 15 of the 17 rare earth elements essential for electronics and weapons manufacturing, with future plans to construct a magnet production facility in Oklahoma. The deal, alongside additional private financing exceeding $1 billion, is scheduled for announcement on January 26.
A U.S. Department of Commerce spokesperson stated: “We are focused on recovering critical and strategic minerals needed for the semiconductor supply chain and U.S. national security.”
The funding consists of $277 million in equity purchases to grant the government approximately 10% ownership in USA Rare Earth, and a $1.3 billion loan that must be repaid with interest.
This investment utilizes a Department of Commerce fund established under the 2022 Chips and Science Act.
