Overview
- The Commerce Department outlined a CHIPS Program letter of intent totaling about $1.6 billion for USA Rare Earth, including a $1.3 billion loan and a $277 million equity stake.
- Reuters reported the administration is stepping back from offering new price floors for critical minerals, a contrast with the Defense Department’s prior 10‑year neodymium‑praseodymium price guarantee for MP Materials.
- After sliding on the policy signal, USA Rare Earth shares rose about 5.8% on Friday morning after Cantor Fitzgerald lifted its price target to $35.
- Cantor estimates roughly $3.5 billion of available funding when including existing cash, the proposed CHIPS financing, and a planned $1.5 billion PIPE, though analysts still expect a roughly $252 million loss this year.
- Other analysts also raised targets, with Canaccord moving to $33 and Benchmark to $45, citing progress toward funding about 85% of a $4.1 billion plan and a doubled magnet output target to 10,000 metric tons annually.