USA Rare Earth secures $1.6bn US funding
USA Rare Earth said on Wednesday it has signed agreements with the US Department of Commerce giving it access to up to $1.6-billion in funding under the CHIPS Act, to support its plans to build a domestic rare earth supply chain.
The agreements follow an earlier announcement that the Trump administration would back a $1.6-billion debt-and-equity funding package for the company.
The agreements come after CEO Barbara Humpton told Reuters in April the deal was expected to close that month.
Earlier this month, the company said it would invest $1.2-billion to build a magnet manufacturing and rare earth metals facility in South Carolina, as it expands domestic production capacity.
Washington has been seeking to increase domestic output of critical minerals and reduce reliance on China, which dominates the global rare earths supply chain.
The funding will support development of the company's Round Top project in Texas, along with processing, metal-making and magnet manufacturing operations in the US.
The agreement adds to a $1.5-billion private capital raise earlier this year, bringing total committed funding for the company's expansion plans to about $3.5-billion.
USAR said it is targeting initial production at Round Top by 2028 and aims to build an integrated mine-to-magnet supply chain.
Shares of the rare earth magnet company fell nearly 6% in morning trade.
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