The United States (US) is planning to invest $1.6 billion in Oklahoma-based USA Rare Earth in exchange for a 10 per cent equity stake, the Financial Times reported on Saturday, citing people familiar with the matter.
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According to the report, the government investment, alongside a separate $1 billion private financing round, is expected to be announced on Monday. Neither the White House nor USA Rare Earth immediately responded to requests for comment.
BREAKING: The Trump Administration is set to invest $1.6 billion in USA Rare Earth Inc, $USAR, for a 10% stake in the company, per FT.
The stock also happened to be up +9% on Friday and +46% over the last 5 days.
Trump wants more US rare earths. pic.twitter.com/CAwaz45op3
— The Kobeissi Letter (@KobeissiLetter) January 25, 2026
The deal would see the US government receive 16.1 million shares in the company, as well as warrants for an additional 17.6 million shares, both priced at $17.17, the report said. The investment forms part of Washington’s broader strategy to strengthen domestic supply chains for critical minerals and reduce reliance on China.
In December, US officials said the administration was planning further “historic deals” with the mining sector to boost domestic production of lithium, rare earth elements and other minerals considered vital for national defence and advanced manufacturing. The US has previously taken equity stakes in companies including MP Materials, Lithium Americas and Trilogy Metals.
The Financial Times quoted an official from the US Commerce Department’s CHIPS office as saying the investment was aimed at onshoring critical and strategic minerals essential to the semiconductor supply chain and national security. The CHIPS programme provides incentives to expand domestic manufacturing capacity and related infrastructure.
The report also said USA Rare Earth has engaged investment bank Cantor Fitzgerald to lead efforts to raise more than $1 billion in additional equity. The firm is chaired by Brandon Lutnick, the son of US Commerce Secretary Howard Lutnick.
USA Rare Earth is developing a rare earths mine in Sierra Blanca, Texas, and a neo magnet manufacturing facility in Stillwater, Oklahoma. The company expects the magnet facility to begin commercial operations in the first half of 2026.
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With a market capitalisation of approximately $3.45 billion, USA Rare Earth has emerged as one of the largest-scale neo magnet manufacturers in the United States, according to the report, which Reuters could not independently verify.