USA Rare Earth Announces Letter of Intent with the U.S. Government for Access to $1.6 Billion in Funding to Accelerate the Domestic Heavy Rare Earth Value Chain. Concurrently, USA Rare Earth Raises $1.5 Billion in Private Sector Investment.

About this update from Usa Rare Earth, Inc.

[{"type":"text","content":"LOI from the Department of Commerce’s CHIPS Program Includes Proposed $277 Million of Federal Funding and a $1.3 Billion Senior Secured Loan from the CHIPS Act By 2030, Transaction Enables Largest Domestic Heavy Rare Earth, Critical Mineral, Metal, and Magnet Production to Support U.S. Semiconductor, Defense, Energy, and Other Major Industries Significantly Bolsters U.S. National Security and Competitiveness by Developing Essential Domestic Supply of Critical Minerals, Metals, and Magnets Currently Unavailable Outside China Secures Domestic Access to 12 of the U.S. Government’s Top 30 Most Essential Critical Minerals and Rare Earth Elements STILLWATER, Okla., Jan. 26, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) (USAR or the Company) today announced its entry into a non-binding Letter of Intent (the LOI) with the U.S. Department of Commerce and a collaboration with the U.S. Department of Energy (DOE). The Department of Commerce’s CHIPS Program has provided an LOI covering a total of $1.6 billion, including $277 million in proposed federal funding and $1.3 billion in a proposed senior secured loan under the CHIPS Act. In conjunction with this announcement, USAR has raised a common stock PIPE in the amount of $1.5 billion anchored by Inflection Point with participation from large mutual fund complexes. The LOI with the U.S. Government reflects the strategic importance of USAR’s mine-to-magnet platform and its role in closing the rare earth element and critical mineral supply gap for essential industries that underpin U.S. national security, including semiconductors, other critical technologies, and advanced manufacturing. The LOI is subject to further diligence, finalization of agreements, customary closing conditions, and approvals. This capital is expected to accelerate and de-risk USAR’s growth objectives across mining, processing, metal-making and magnet manufacturing, and supports a business that by 2030 will: Extract 40,000 metric tons per day of rare earth and critical mineral feedstock from USAR’s Round Top deposit, which is expected to begin commercial production in 2028;Process a combined 8,000 metric tons per annum (tpa) of third-party MREC and heavy rare earth elements (HREEs) and critical mineral oxides and concentrates at Round Top, including dysprosium (Dy), terbium (Tb), yttrium (Y), gadolinium (Gd)...

More updates from Usa Rare Earth, Inc.