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Trump admin secures 10% stake in US miner for $1.6B
25 Jan 2026

The Trump administration is involved in a $1.6 billion debt-and-equity investment package in USA Rare Earth, a strategic move to secure a 10% stake in the company.

This package includes both the administration's investment and a separate $1 billion private investment.

The investment will be used to develop a domestic mine and magnet facility, according to Reuters.

The initiative is part of Washington's effort to boost production of critical minerals and reduce reliance on China for these resources.

Investment details and future plans
Deal specifics

USA Rare Earth, based in Oklahoma, will hold a conference call with investors to discuss the deal's terms.

The company has been working on a mine in Sierra Blanca, Texas, which is expected to open by 2028.

It also has a magnet manufacturing facility in Stillwater, Oklahoma, expected to start operations later this year.

As part of investment deal, Washington will get 16.1 million shares in the company and warrants for an additional 17.6 million shares at $17.17 per share.

Trump's administration's previous investments in critical minerals
Past investments

This deal is not the first of its kind by the Trump administration.

Last year, it had taken equity stakes in MP Materials, Lithium Americas, and Trilogy Metals.

A senior official from the administration had said they were planning more "historic deals" with the US mining sector to boost production of lithium, rare earths and other critical minerals used in national defense and artificial intelligence (AI).