USA Rare Earth Secures $1.6B Funding from U.S. Commerce Department
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 03 2026
0mins
Source: seekingalpha
- Funding Agreement: USA Rare Earth has entered into definitive agreements with the U.S. Department of Commerce, unlocking access to up to $1.6 billion in funding, including $277 million in federal funding and $1.3 billion in senior secured loan capacity, significantly enhancing the company's rare earth mining and metal production capabilities.
- Milestone-Based Disbursement: The funding will be disbursed based on the achievement of project milestones, ensuring progress in the development of the Round Top heavy rare earth and critical mineral deposit in Texas, which is targeted to commence commercial production in 2028.
- Capacity Reshoring: The agreements will also support the reshoring of 10,000 tons/year of heavy rare earth element metal and alloy-making capacity, along with scaling NdFeB magnet manufacturing capacity in Oklahoma and South Carolina to 10,000 tons/year, thereby enhancing U.S. self-sufficiency in the rare earth sector.
- Total Capital Commitment: Combined with the $1.5 billion private capital raise completed in January, the agreements bring the total committed capital supporting USA Rare Earth's growth plan to approximately $3.5 billion, providing robust financial backing for its strategic initiatives.
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Analyst Views on USAR
Wall Street analysts forecast USAR stock price to rise
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 20.900
Low
15.00
Averages
22.75
High
28.00
Current: 20.900
Low
15.00
Averages
22.75
High
28.00
About USAR
USA Rare Earth, Inc. is a supplier of sintered neo magnets and other rare earth metals. The Company is engaged in developing a NdFeB magnet manufacturing plant in Stillwater, Oklahoma, and intends to establish domestic rare earth and critical minerals supply, extraction, and processing capabilities to both supply its magnet manufacturing plant and market surplus materials to third parties. It is focused on developing domestic rare earth production that offers sustainable and secure domestic supply of materials critical to key industries. Its vertically integrated approach consists of sourcing rare earth elements (REEs), in addition to other critical minerals such as gallium, to producing finished NdFeB magnets. The Company serve a variety of industries, such as defense, robotics, electric vehicles, wind power, appliances, cordless tools and computing and semiconductors. The Company owns, Less Common Metals Ltd., which is a scaled ex-China rare earth metal and alloy manufacturer.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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See More
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