USA Rare Earth, on Wednesday, finalized a major deal with the U.S. Department of Commerce unlocking access to $1.6 billion in federal funding. Under the CHIPS Program, the American mining and manufacturing company will rope-in $277 million in direct grants and $1.3 billion in loans. The funds will be used to build a domestic supply chain from mining to magnet manufacturing in the U.S.
The agreement will support USA Rare Earth’s roadmap around mining heavy rare earths to processing them into the metals and advanced permanent magnets needed for modern technology.
“This landmark collaboration reflects the scale and urgency of securing critical supply chains for technologies essential to long-term economic growth. We are grateful for the leadership shown across government in moving with speed and conviction,” Michael Blitzer, Chairman of the Board of USA Rare Earth. “Our focus now is execution and generating industry-leading returns for both our shareholders and the U.S. government.”
The development comes at a time when U.S. President Donald Trump is pushing for tech independence against the risks of spying and other threats to national security, President Trump has also asked American tech firms to prioritize native hirings and reduce bringing talent from other nations like China and India.
Founded in 2019, the USA Rare Earth has positioned itself as a trusted mine-to-magnet supply chain in the U.S. It runs a magnet manufacturing facility in Oklahoma and the Round Top heavy rare earth project in West Texas.
Its products and services are eligible for use across key sectors including defense, aerospace, and semiconductors.
“From physical AI, energy, mobility, and healthcare, our integrated value chain is designed to power the technology and innovations of the 21st Century. We look forward to our partnership with the United States Government,” said USA Rare Earth, Barbara Humpton commenting on the development.
With the Federal backing it now has, USA Rare Earth essentially plans to build an elaborate manufacturing system suited to extract and produce a wide range of elements — ranging from Earth elements to finished tech parts.
Once fully operational, this project is expected to become the largest domestic platform in the U.S. for mining, separating, and processing these critical minerals from nature.
By 2030, USA Rare Earth aims to become the global leader in rare earths. On a national level, the company competes with MP Materials which owns and operates the Mountain Pass mine in California and are actively building out their own domestic magnetics facility.
In March 2025, the company went public on NASDAQ under the ticker USAR. At the time of writing, the USAR stock was trading at $27.98 with a minor drop of 2.72 percent.