The U.S. administration under President Donald Trump has announced plans to invest $1.6 billion in USA Rare Earth, an American company that will become the largest public investment in the private sector to secure the supply of critical minerals essential for semiconductors and national defense.
This funding, expected to be finalized on January 26, includes a $277 million equity stake granting the U.S. government approximately 10% ownership and a $1.3 billion loan with interest obligations. USA Rare Earth is developing a mine in Texas that contains 15 of the 17 rare earth elements used in electronics and military applications, with plans to construct a magnet manufacturing plant in Oklahoma.
The investment is drawn from a fund created under the 2022 Chips and Science Act, positioning the United States as both an owner and creditor in USA Rare Earth to control strategic rare earth metals production.
