FT: US to invest $1.6 billion in rare earth metal production

The administration of US President Donald Trump plans to invest $1.6 billion in the American company USA Rare Earth, which would become the largest government investment in the private sector aimed at securing supplies of critical minerals.

USA Rare Earth is developing a mine in the state of Texas that contains 15 of the 17 rare earth elements used in the production of electronics and weapons, and later plans to build a magnet manufacturing plant in Oklahoma, Caliber.Az reports via the Financial Times (FT)

The deal, along with separate private financing of more than $1 billion, is expected to be announced on January 26.

“We are focused on bringing back critical and strategic minerals needed for semiconductor supply chains and US national security,” a representative of the US Department of Commerce said.

According to the newspaper, of the $1.6 billion, $277 million will be spent on purchasing shares of USA Rare Earth, giving the government roughly a 10% stake in the company. In addition, another $1.3 billion will be provided as a loan that the company must repay with interest.

The article notes that the funds are coming from a special US Department of Commerce fund created under the 2022 CHIPS and Science Act. As a result, the US will simultaneously become a co-owner and a creditor of the company, gain control over strategic rare earth metals, and support the development of domestic production.

By Khagan Isayev