DealsJun 3, 2026, 08:16 AM
USA Rare Earth Secures $1.6B Federal Funding & Loan Capacity
AI Summary
USA Rare Earth, Inc. announced definitive agreements with the U.S. Department of Commerce, unlocking access to up to $1.6 billion in funding under the CHIPS Program. This comprises up to $277 million in federal funding and up to $1.3 billion in senior secured loan capacity. Combined with a $1.5 billion private capital raise and previous funding, the total committed capital for the company's growth plan now reaches approximately $3.5 billion, advancing its integrated mine-to-magnet value chain in the U.S.
Key Highlights
- USA Rare Earth secured up to $1.6 billion in funding from the U.S. Department of Commerce's CHIPS Program.
- This includes up to $277 million in federal funding and up to $1.3 billion in senior secured loan capacity.
- Total committed capital supporting USA Rare Earth's growth plan now stands at approximately $3.5 billion.
- The capital includes a $1.5 billion PIPE closed in January 2026 and previous capital raises.
- Funding supports the development of the Round Top heavy rare earth deposit in Texas, targeting commercial production in 2028.
- It also enables reshoring 10,000 tpa of heavy rare earth metal- and alloy-making capacity via Less Common Metals.
- The agreements will scale neodymium-iron-boron (NdFeB) magnet manufacturing capacity to 10,000 tpa.
- USA Rare Earth will issue 16.1 million common shares and approximately 17.6 million warrants to the Department of Commerce.
Price Impact
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