USA Rare Earth scores $1.6B boost from Trump administration
USA Rare Earth just landed a huge $1.6 billion deal from the Trump administration to ramp up rare earth mining in Texas and magnet production in Oklahoma.
The funding—split between direct cash and a big loan—is part of a push to make the US less dependent on China for these crucial materials used in tech, EVs, and defense.
Why does it matter?
Right now, China processes more than 90% of the world's critical minerals, which is risky for US supply chains.
With this investment (and some company shares going to the government), USA Rare Earth plans to seriously increase production in the coming years.
US Commerce Secretary Howard Lutnick said, "USA Rare Earth's heavy critical minerals project is essential to restoring US critical mineral independence."
Investors seemed excited too—shares rose more than 13% in premarket trading in one report, while another put the gain at about 6% by afternoon trading on Jan. 26, 2026.