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US to inject $1.6 billion into rare earths miner for 10% stake, FT reports
The U.S. will acquire a 10% stake in USA Rare Earth to secure domestic rare earth production critical for defense and technology, with $1.3 billion in government-backed debt.
- The Financial Times reported on Saturday that the United States government will inject $1.6 billion into USA Rare Earth for a 10% stake, with the investment and a separate $1 billion financing expected on Monday.
- To reduce reliance on China, officials say the administration aims to establish a sovereign 'mine-to-magnet' supply chain securing materials for defense and high-tech industries.
- The financing package includes $1.3 billion in senior secured debt from a Department of Commerce CHIPS finance facility; the government receives 16.1 million shares and 17.6 million warrants at $17.17.
- The investment forms part of broader government equity interventions that may affect investors and market valuations, while it could accelerate U.S. production of rare-earth magnets vital to the U.S. defense sector, electric vehicle and renewable energy industries.
- The move follows prior government stakes such as a roughly six-month-old MP Materials position and CHIPS Act signals last December, with USA Rare Earth expanding via Less Common Metals and the Stillwater, Oklahoma facility.
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22 Articles
22 Articles
The Trump administration plans to invest $1.6 billion in an American rare-earth company, its largest investment in the sector, in Washington's latest initiative to support private industry...
·Milan, Italy
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The "Financial Times" reports that Washington wants to join the US Rare Earth company, which would be the Trump administration's fourth raw material investment.
·Düsseldorf, Germany
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Coverage Details
Total News Sources22
Leaning Left2Leaning Right5Center5Last UpdatedBias Distribution42% Center, 42% Right
Bias Distribution
- 42% of the sources are Center, 42% of the sources lean Right
42% Right
L 16%
C 42%
R 42%
Factuality
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