Reviewed by Gotrade Internal Analyst
Gotrade News - The US government just announced a massive $1.6 billion investment to strengthen domestic critical mineral supply chains. This strategic move includes acquiring a 10% stake in the mining firm USA Rare Earth.
The Commerce Department is providing a $1.3 billion senior secured loan through the CHIPS Act. This capital injection aims to secure magnet supplies essential for the nation's high-tech defense systems.
Key Takeaways:
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US government acquires 10% stake in USA Rare Earth via $1.6 billion package.
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Texas-based mining project slated to produce heavy rare earth elements by 2028.
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Strategic investment targets reducing manufacturing reliance on foreign supply chains like China.
The Trump administration continues its sprint toward energy independence by funding domestic mining projects directly. This deal marks the fourth equity investment following previous stakes in MP Materials.
Washington has also funneled capital into other critical mineral players like Lithium Americas. According to reports from Reuters, the full investment package will be officially unveiled this Monday.
Shares of USA Rare Earth surged 16% in premarket trading immediately after the investment news broke. Data from The Wall Street Journal shows the stock price hitting $28.63 per share instantly.
Commerce Secretary Howard Lutnick stated that this project is vital for restoring national critical mineral independence. The government is committed to ensuring US manufacturers are no longer tethered to foreign nations.
The company is currently developing a Texas mine rich in high-purity dysprosium oxide deposits. This mineral is a core component for making permanent magnets used in EVs and turbines.
CEO Barbara Humpton expressed gratitude for the White House's fiscal support regarding the company's mission. New capital allows the firm to accelerate building processing facilities essential for national security.
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Reference:
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The Northern Miner, Trump administration to acquire 10% of USA Rare Earth in $1.6B deal: reports. Diakses pada 26 Januari 2026
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The Wall Street Journal, U.S. Government Investing $1.6 Billion in Mining Company USA Rare Earth. Diakses pada 26 Januari 2026
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