US to inject $1.6 billion into rare earths miner for 10% stake, FT reports

Also: USA Rare Earth stock is soaring on news that the Trump administration is taking a stake in the mining company (Business Insider)

________________________________________________

Source: Reuters

US to inject $1.6 billion into rare earths miner for 10% stake, FT reports

Reuters
Updated Mon, January 26, 2026 at 5:35 AM EST 2 min read

Jan 24 (Reuters) - The United States is planning to inject $1.6 billion into Oklahoma-based miner USA Rare Earth and will receive a 10% stake ​in the company, the Financial Times reported on Saturday, citing people ‌familiar with the matter.

The government investment and a separate $1 billion private financing deal are slated to ‌be announced on Monday, the report said.

The White House and USA Rare Earth did not immediately respond to Reuters' request for comment.

The government would receive 16.1 million shares in the rare earths company, along with warrants for a further 17.6 million, both ⁠priced at $17.17, the report ‌said.

-snip-

Read more: https://finance.yahoo.com/news/us-inject-1-6-billion-005813216.html

________________________________________________

Source: Business Insider

USA Rare Earth stock is soaring on news that the Trump administration is taking a stake in the mining company

Samuel O'Brient
Mon, January 26, 2026 at 9:16 AM EST 2 min read

• USA Rare Earth stock surged on Monday on news of an investment from the US Department of Commerce.
• The company will extract critical minerals from its Round Top mine in West Texas by 2030.
• This move aligns with the White House strategy to boost America's supply of rare earth materials.

-snip-

What it means: It's the latest development in the Trump administration's push to strengthen America's domestic supply chain of critical materials and become less dependent on foreign producers. The administration has taken stakes in firms across a handful of industries, with Trump pushing for more government involvement in industries he deems crucial to US security.

As the AI boom greatly increases the need for critical minerals and rare earth elements, the White House has taken stakes in other US-based mining companies, including MP Materials, Critical Metals, and Lithium Americas. All three mining stocks also rose on the news on Monday.

This tactic of taking stakes in private firms has sparked significant momentum for mining stocks, turning the industry into one of the hottest trades of 2025. This trend looks poised to continue into 2026 as the White House adds another domestic miner to its portfolio.

-snip-

Read more: https://finance.yahoo.com/news/usa-rare-earth-stock-soaring-141609427.html