The Trump administration is set to acquire a 10% stake in USA Rare Earth under a $1.6 billion combination of debt and equity intended to help finance the company’s planned domestic mine and magnet manufacturing facility, according to two people familiar with the arrangements.
Officials expect the $1.6 billion package and a related $1 billion private investment to be announced on Monday. Oklahoma-based USA Rare Earth is scheduled to host a morning conference call with investors to review the details of the transactions, one source familiar with the plans said.
Neither the White House nor USA Rare Earth had offered public comment by the time the details were circulated. One of the sources briefing others on the transaction said the administration would receive 16.1 million shares of USA Rare Earth and warrants for an additional 17.6 million shares. Both the shares and the warrants would be priced at $17.17 per share, roughly in line with the company’s trading levels earlier in the month.
The transaction is positioned within Washington’s broader push to boost domestic output of critical minerals. China remains the dominant global processor of rare earth elements - a group of 17 minerals used across electronics and military applications - while U.S. production is currently limited, prompting federal efforts to expand capacity.
USA Rare Earth is advancing a mining project at Sierra Blanca, Texas, in partnership with Texas Mineral Resources, with the site slated to begin operations by 2028. The company also operates a magnet manufacturing facility in Stillwater, Oklahoma, that is expected to start production later this year.
In addition to the share purchase and warrants, the transaction is described as part of a continuing pattern of federal equity investments in the critical minerals sector. The administration previously took stakes in MP Materials, Lithium Americas and Trilogy Metals. A senior administration official said last month that more "historic deals" with the U.S. mining industry were being planned to expand production of lithium, rare earths and other critical minerals used in national defense, artificial intelligence and related fields.
Separately, USA Rare Earth has engaged Cantor Fitzgerald to assist with fundraising. Cantor Fitzgerald is chaired by Brandon Lutnick, who is identified in the information provided as the son of U.S. Secretary of Commerce Howard Lutnick.
One media outlet was first to report on the investment. The company has arranged an investor call to go over the announced terms.
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