USA Rare Earth Secures $1.6B CHIPS Act Funding

This landmark federal package finalizes a previously announced debt-and-equity funding initiative to strengthen the domestic critical minerals supply chain.

CEO Barbara Humpton previously told Reuters that executives expected to close this massive clean energy technology deal back in April.

The company recently committed $1.2 billion to construct a specialized magnet manufacturing facility and metals plant in South Carolina.

Washington actively seeks to increase domestic mineral output to reduce reliance on China, which currently dominates global rare earth production.

The capital injection directly supports development at the company’s Round Top project in Texas alongside multiple domestic processing operations.

This federal agreement complements a recent $1.5 billion private capital raise, boosting total committed expansion funding to $3.5 billion.

Management targets initial production at the Texas site by 2028, establishing a fully integrated, domestic mine-to-magnet supply chain.

Despite the historic funding milestone, shares of the rare earth magnet manufacturer fell nearly 6% during morning trading.

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