The Trump administration is set to take a 10% stake in USA Rare Earth as part of a $1.6 billion debt-and-equity financing package designed to support the company’s plans for a U.S.-based rare earth mine and a magnet manufacturing facility, according to two sources familiar with the matter.
The package—along with a separate $1 billion private investment—is expected to be announced on Monday. One source said Oklahoma-based USA Rare Earth will also hold a morning conference call with investors to walk through the terms. The White House did not immediately respond to a request for comment, and USA Rare Earth declined to comment.
Rare earths—a group of 17 minerals used in electronics and military hardware—are predominantly processed in China. With the United States producing only limited quantities, Washington has been pushing to expand domestic supply.
USA Rare Earth is developing a mine in Sierra Blanca, Texas, alongside Texas Mineral Resources. The project is targeted to open in 2028. The company also has a magnet manufacturing facility in Stillwater, Oklahoma, which it expects to begin operating later this year.
Under the deal, the U.S. government would receive 16.1 million shares of USA Rare Earth plus warrants to buy another 17.6 million shares, the sources said. Both the shares and warrants would be priced at $17.17 per share—roughly in line with where the company’s stock traded earlier this month. The Financial Times first reported the investment.
The transaction would add to the administration’s recent push into critical minerals, following equity investments last year in MP Materials, Lithium Americas and Trilogy Metals. A senior administration official said last month that further “historic deals” with U.S. miners were being planned to boost production of lithium, rare earths and other strategic inputs linked to national defense and artificial intelligence.
One source also said USA Rare Earth has hired Cantor Fitzgerald—chaired by Brandon Lutnick, the son of Commerce Secretary Howard Lutnick—to assist with fundraising.
