The Trump administration will acquire a 10% stake in an American rare earth company, involving $1.6 billion.

According to a Reuters report on the 26th, the Trump administration is acquiring a 10% stake in USA Rare Earth, an American rare earth company, through a $1.6 billion debt and equity investment plan. This is Washington’s latest move to promote domestic production of key minerals. According to two sources familiar with the matter, the deal will be officially announced on Monday. USA Rare Earth, headquartered in Oklahoma, will hold an investor conference call that morning to discuss the terms of the deal. The funds will be used to help the company develop domestic mines and magnet manufacturing facilities. In addition, USA Rare Earth will receive $1 billion in private investment. This is another major investment in the key minerals sector by the Trump administration, following last year’s acquisition of stakes in MP Materials, Lithium Americas, and Trilogy Metals. Government Equity Investment Details Revealed According to insiders, as part of the investment, the US government will acquire 16.1 million shares of USA Rare Earth, as well as an additional 17.6 million stock warrants. Both are priced at $17.17 per share, which is close to the company’s share price earlier this month. USA Rare Earth is currently cooperating with Texas Mineral Resources to develop a mine in Sierra Blanca, Texas, with production slated to begin in 2028. The company also owns a magnet manufacturing facility in Stillwater, Oklahoma, which is expected to come online later this year. Rare earths are a group of 17 mineral elements widely used in electronics and military equipment manufacturing. At present, the US produces only a small amount of rare earths, prompting Washington to aggressively promote increased domestic production in recent years. Key Minerals Strategy Continues This deal is the latest move by the Trump administration to enter the key minerals sector. Last year, the administration made equity investments in MP Materials, Lithium Americas, and Trilogy Metals. A senior Trump administration official stated last month that the government is planning to reach more "historic deals" with the US mining sector to boost production of lithium, rare earths, and other minerals critical for defense, artificial intelligence, and related fields. According to a source, USA Rare Earth has hired financial services firm Cantor Fitzgerald to assist with fundraising. The firm’s chairman is Brandon Lutnick, son of US Secretary of Commerce Howard Lutnick. Risk Warning and Disclaimer The market has risks, and investment should be cautious. This article does not constitute personal investment advice, nor does it take into account individual users’ special investment objectives, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at your own risk.