US government to invest $1.6B in USA Rare Earth for 10% stake - FT

January 25, 2026

The Trump administration is poised to inject $1.6B into USA Rare Earth (USAR) in exchange for a 10% stake in the company, the U.S. government’s biggest investment in the rare earths sector so far, the Financial Times reported Saturday.

The federal government investment and a separate $1B private financing deal led by Cantor Fitzgerald are expected to be announced Monday, according to the report.

The government reportedly will receive 16.1M shares in USA Rare Earth (USAR) and warrants for another 17.6M shares, both priced at $17.17/share.

USA Rare Earth (USAR) also will receive $1.3B in senior secured debt financing at market rates from the government, which will be funded from a finance facility created for the U.S. Department of Commerce as part of the CHIPS and Science Act passed in 2022, the report said.

The deal would mark the latest example of the Trump administration’s efforts to intervene in parts of the private sector viewed as critical to U.S. national security; last year, the government took equity stakes in at least six minerals companies, including MP Materials, Lithium Americas and Trilogy Metals.

Shares in USA Rare Earth (USAR) have more than doubled this month alone, helped by a 40% jump this week.