The post Trump administration backs USA Rare Earth with $1.6 billion ‘strategic capital injection’ appeared on BitcoinEthereumNews.com.

The Trump administration is throwing $1.6 billion into USA Rare Earth, the largest move it’s made yet in the rare earths sector. The company, listed publicly and based in Oklahoma, holds major deposits of heavy rare earths across the U.S. The funding comes as Washington scrambles to secure control of materials key to national defense, energy, and tech supply chains. The federal government will take a 10% stake in the miner through 16.1 million shares priced at $17.17 each, and warrants for another 17.6 million at the same price. The total equity buy is worth $277 million, but the government is already looking at an implied profit of $490 million based on the company’s current stock price of $24.77. That’s just the equity side. A separate $1.3 billion in senior secured debt is also being handed over, coming from a finance facility inside the Commerce Department, created under the CHIPS and Science Act of 2022. Government boosts rare earth output with direct investment One official at the Chips office, the group that led the negotiations, said they’re “focused on onshoring critical and strategic mineral essential to the semiconductor supply chain and U.S. national security.” The office operates under the National Institute of Standards and Technology, which falls under the Commerce Department. That department has so far refused to comment publicly on the transaction. The debt portion of the deal will be issued at market rates and structured directly with USA Rare Earth. The move comes as investors are swarming around anything linked to rare earths. Earlier this week, Trump said the U.S. had finalized a “framework” that might lead to deals involving Greenland’s untapped mineral reserves. One insider made it clear, though: this deal has nothing to do with Greenland. Shares in USA Rare Earth have more than doubled this…

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Filed under: News - @ January 25, 2026 3:21 am