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USA Rare Earth shares surged more than 20% in pre-market trading to around $32, extending gains after a strong prior session. The rally followed confirmation that the U.S. Department of Commerce plans to back the company with a $1.6 billion financing package.  During regular trading, USAR climbed as much as 20.6% before easing to gains near 15%, reflecting intense investor focus on domestic critical mineral supply chains. Why the sudden excitement? The scale and structure of the funding provided the answer. Commerce Department Outlines $1.6B Financing Package USA Rare Earth disclosed that the Department of Commerce issued a non-binding Letter of Intent under the CHIPS Act covering $277 million in proposed federal funding and a $1.3 billion senior secured loan. The agreement also involves collaboration with the U.S. Department of Energy.  Officials framed the plan as a strategic move to close supply gaps across rare earth elements essential for semiconductors, advanced manufacturing, and national defense. The package positions USA Rare Earth as a cornerstone of Washington’s push to localize production from mining through magnet manufacturing. Trump Administration Takes Equity Stake Reports from the Financial Times indicated that the Trump administration plans to acquire a 10% stake in USA Rare Earth as part of the broader financing. The reported purchase price reflected roughly a 30% discount to the prior Friday’s closing price, valuing the company at a fully diluted market capitalization of about $4.03 billion.  Source: CNBC Via X Separately, USA Rare Earth announced a $1.5 billion private placement priced at 21.50, also below the previous close. Together, the PIPE transaction and proposed government support would lift total available capital to roughly $3.1 billion. Building a Mine-to-Magnet Platform USA Rare Earth continues to advance its vertically integrated strategy. The company is nearing completion of a magnet manufacturing facility in Stillwater, Oklahoma.…

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Filed under: News - @ January 26, 2026 8:26 pm