Topline
Shares of USA Rare Earth rallied by more than 13% shortly after trading opened Monday, after the company announced the Trump administration would acquire a stake in the mining firm following similar deals to reduce dependence on Chinese imports—though U.S. production for rare earths and minerals has yet to meet growing demand.
The Trump administration has acquired equity in several miners to cut dependence on China.
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Key Facts
USA Rare Earth’s stock surged by 13.2% to around $28.15 as of Monday morning, after an earlier surge as high as 27% and increases of 9% and 17% in the previous two trading sessions.
A rally for the company follows an announcement Monday morning the Commerce Department would provide USA Rare Earth with a $1.6 billion loan and $277 million in federal funding in exchange for 16.1 million shares of common stock.
The funding will support USA Rare Earth’s spending on rare-earth mining, processing, metal-making and magnet manufacturing, the company said.
Commerce Secretary Howard Lutnick said in a statement that USA Rare Earth’s heavy critical minerals project is “essential to restoring U.S. critical mineral independence,” adding, “This investment ensures our supply chains are resilient and no longer reliant on foreign nations.”
The U.S. has yet to produce enough rare-earth and critical minerals to meet commercial demand: The Trump administration has said the U.S. was 100% reliant on imports for 12 critical minerals, including cobalt and nickel.
Market demand for minerals like graphite, cobalt, nickel and nickel is expected to increase by up to 60% by 2040, according to the International Energy Agency.
Key Background
Interior Secretary Doug Burgum announced last year the Trump administration would seek equity in mining firms to cut U.S. dependence on imports. China dominates rare-earth refining and magnet production globally, and many U.S. firms—including USA Rare Earth—are not yet profitable amid broader efforts to expand production. In the company’s statement on Monday, USA Rare Earth said it planned for commercial output to begin in the late 2020s, with plans for its magnet facility in Stillwater, Oklahoma, to be completed later this year.
What Companies Has The U.s. Acquired Stakes In?
The U.S. announced in July 2025 it would become the largest shareholder in MP Materials, which owns the only rare-earth mine in the U.S., after the Defense Department purchased $400 million in the company’s preferred stock. A White House official told Forbes in September the Trump administration would seek a stake in Lithium Americas as it renegotiated a $2.2 billion loan with the Energy Department for a mine in Nevada. In October, the Trump administration said it would invest in the Canadian mining firm Trilogy Metals, including a $35.6 million investment to support mining exploration in Alaska. Korea Zinc announced in December the company would build a $7.4 billion minerals refinery in Tennessee, with plans for the Defense Department to hold a 40% stake in the venture after providing $4.7 billion in loans.