Shares of USA Rare Earth leapt in early trading on Monday after reports that the Trump administration would take a 10% ownership stake in the miner as part of a $1.6 billion debt-and-equity investment package. The stock rose by as much as 62% in premarket trading, according to intraday price moves.
The same reports indicate a separate $1 billion private investment will be announced at the same time. USA Rare Earth is set to host a morning conference call with investors to discuss the details of the transactions, a source who was briefed on the plans said.
A 10% ownership position would make the administration the company's largest public shareholder, data compiled by LSEG show. USA Rare Earth has been advancing a mining project in Sierra Blanca, Texas, in partnership with Texas Mineral Resources, with the mine planned to open by 2028. The company also operates a magnet manufacturing facility in Stillwater, Oklahoma, which is expected to begin operations later this year.
Officials described the move as part of a broader push by the Trump administration to increase its footprint in the critical minerals sector. It follows prior equity stakes taken last year in MP Materials, Lithium Americas and Trilogy Metals. A senior administration official said last month that more "historic deals" with the U.S. mining sector were being planned.
Rare earths - a group of 17 elements, or the magnets that are sometimes produced from them - have a wide range of industrial and defense uses. They are components in consumer electronics such as iPhones and washing machines, and are used in military systems including F-35 fighter jets. They are also important in electric vehicles and medical equipment.
Markets have already been responding to tightening global supplies and an international push to secure domestic sources of critical minerals to reduce reliance on China. Shares of rare-earth miners surged in 2025 amid those supply concerns and the global race for resources. The Trump administration's recent move to buy resource-rich Greenland was also cited as a factor that further supported gains in the sector this year.
USA Rare Earth's shares were last reported up 38.5% before the bell, extending a rally that had already seen the stock rise by more than 100% so far in January. U.S.-listed shares of Trilogy Metals, Lithium Americas and MP Materials likewise registered gains, rising between 5% and 12.4% as markets priced in the reported government involvement.
Market reaction and next steps
Investors will be watching the company's conference call for confirmation of transaction structure, timing and any additional details on the private investment. Until the company provides its official announcement, the reported terms remain subject to confirmation.