USA Rare Earth Inc. has assembled a funding package that could exceed $3 billion to support development of a domestic rare-earth and critical mineral supply chain, the company's chief executive officer, Barbara Humpton, said in an on-camera interview.
Humpton told Bloomberg Television on Tuesday that the potential financing includes up to $1.6 billion from the Department of Commerce, with the balance expected to come from private-sector participants. She said the combined resources would be used to accelerate the timetable for developing the company's Round Top deposit, with a stated goal of taking the site into production by 2028.
"The defense sector knows that they need to chose different sources of supplies from China," Humpton said. "The conversations we are having today say that they are willing to make commitments years from now in order to ensure that supply."
The company framed the funding as a response to Washington's strategic priority of reducing reliance on Chinese sources for rare-earth materials. USA Rare Earth's shares rose on Tuesday after the administration announced a separate $12 billion initiative to establish a critical mineral reserve.
While the federal portion of the financing is described as conditional - contingent upon USA Rare Earth meeting specified milestones - the private commitments cited by Humpton were described as not yet finalized. Despite that uncertainty, she indicated the potential package would enable the firm to fast-track development activities tied to Round Top.
Context and company objective
USA Rare Earth is positioning itself to deliver a U.S.-based alternative for rare-earth and critical mineral supplies. The stated production target for the Round Top deposit remains 2028, contingent on securing and realizing the pledged funds and meeting any federal milestone requirements.
Financial and market reaction
Market reaction to the broader policy announcement was reflected in the company's stock movement on Tuesday following the administration's $12 billion critical mineral reserve announcement. The firm's ability to translate potential funding into completed, milestone-driven disbursements will determine whether the accelerated schedule can be realized.
What remains unresolved
- Federal funds are conditional on milestone achievement.
- Private-sector commitments referenced by the CEO have not been finalized.
- Timelines are dependent on converting the potential funding into executed agreements and meeting required conditions.