DealsJun 3, 2026, 08:27 AM
USA Rare Earth Secures Up to $1.6B from U.S. Dept. of Commerce
AI Summary
USA Rare Earth, Inc. has finalized definitive agreements with the U.S. Department of Commerce, unlocking access to up to $1.6 billion in funding under the CHIPS Program. This includes $277 million in direct federal funding and $1.3 billion in senior secured loan capacity, with disbursements tied to project milestones. The funding will support the development and expansion of critical rare earth mining, processing, metal, and magnet manufacturing facilities across the U.S. Combined with previous capital raises, this brings the total committed capital to approximately $3.5 billion, positioning USA Rare Earth to advance its integrated domestic supply chain.
Key Highlights
- USA Rare Earth secured up to $1.6 billion in funding from the U.S. Department of Commerce under the CHIPS Program.
- The funding includes $277 million in direct funding awards and $1.3 billion in senior secured loan capacity.
- Direct funding will support construction of a rare earth mining/processing facility ($132M), magnet facility expansion ($50M), strip casting/metal facility expansion ($20M), and new magnet ($60M) and strip casting/metal ($15M) facilities.
- The loan guarantee covers $1.3 billion for projects including $550M for Round Top Mine, $250M for Stillwater Magnet, $100M for Stillwater Metal, $325M for Magnet Project 2, and $75M for Metal Project 2.
- Total committed capital supporting USA Rare Earth's growth plan reaches approximately $3.5 billion, including a $1.5 billion PIPE closed in January 2026.
- USAR will issue 16.1 million shares of common stock and approximately 17.6 million warrants to the Department of Commerce.
- The agreements aim to build the only vertically integrated rare earth value chain in the U.S., from mining to magnet production.
Price Impact
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