Overview
- Reuters reports the Trump administration plans to acquire roughly 10% of USA Rare Earth as part of a $1.6 billion debt-and-equity package, with a public announcement expected Monday.
- Under the reported terms, Washington would receive 16.1 million shares plus warrants for 17.6 million more, both priced at $17.17 per share.
- USA Rare Earth is lining up a separate $1 billion private financing round, and the company has scheduled a morning investor call to discuss the package.
- The company targets a Stillwater, Oklahoma magnet plant start later this year and a Sierra Blanca, Texas mine with Texas Mineral Resources by 2028.
- The deal follows prior federal equity stakes in MP Materials, Lithium Americas, and Trilogy Metals, and USA Rare Earth has tapped Cantor Fitzgerald, chaired by Brandon Lutnick, son of Howard Lutnick, to assist fundraising.