US to Invest $1.6 Billion in USA Rare Earth, Acquiring 10% Stake

• The Trump administration plans to invest $1.6 billion in USA Rare Earth, as reported by the Financial Times.
• The US government will receive a 10% stake in the mining company as part of the deal.
• The investment, along with a separate $1 billion private financial deal, is expected to be announced soon.
• The government will acquire 16.1 million shares and warrants for 17.6 million shares, both priced at $17.17 each.
• USA Rare Earth will also receive $1.3 billion in senior secured debt financing from a Department of Commerce facility under the CHIPS and Science Act.

Why It Matters: US government to invest $1.6 billion in USA Rare Earth, gaining a 10% stake and debt financing.