Trump administration invests in another US rare earth miner to loosen China’s grip on supply
The US is taking a minority stake in a rare earth miner in Oklahoma; This is the latest government investment in the sector. Trying to minimize addiction Restrictions remain on the import of a material widely used in smartphones, robotics, electric vehicles and many other high-tech products.
China processes more than 90% of the world’s critical minerals and has used its dominance in the market to gain advantage in the trade war with Washington.
USA Rare Earth said Monday that the U.S. Department of Commerce is investing $1.6 billion in the company to advance work on a mine in Texas and build a magnet manufacturing facility in Oklahoma.
Shares of USA Rare Earth rose more than 13% before U.S. markets opened.
The agreement with the Commerce Department’s CHIPS program includes $277 million in proposed federal financing and $1.3 billion in senior secured loans. In return, the Ministry of Commerce will have the right to purchase 16.1 million shares, as well as an additional 17.6 million shares.
“The U.S. Rare Earth heavy critical minerals project is vital to restoring U.S. critical mineral independence,” Commerce Secretary Howard Lutnick said in a statement. “This investment ensures that our supply chains are resilient and no longer dependent on foreign countries.”
This is the Trump administration concentrated efforts build critical mineral industry Working to break in the United States The pressure China has in the global supply chain.
Industry insiders, analysts and lawmakers have been warning for years: America’s dependence on China for critical minerals A list of 50 minerals, including 17 sought-after rare earth elements, is a national security vulnerability.
President Donald Trump’s attempts to buy Greenland It’s part of the push.
USA Rare Earth, headquartered in Stillwater, Oklahoma, is the third US operator the Trump administration has invested in in recent months.
Pentagon Invested 400 million dollars at rare earth producer MP Materials. gave it to the US company $150 million loan in August.
The Trump administration and private investors announced partnerships with rare earth startups Vulcan Elements and ReElement Technologies in November. $1.4 billion deal It aims to increase US access to materials and technology vital to producing a range of high-tech products and military equipment.
Trump administration tax and expenditure deduction invoice It includes $2 billion for the Pentagon to increase the U.S. stockpile of critical minerals and another $5 billion to invest in those supply chains through 2029.
The Pentagon said it is awarding more than $439 million in grants to establish supply chains for domestic rare earths between 2020 and 2024.
Earlier this month, a bipartisan group of MPs recommended Creating a new $2.5 billion agency to promote production of rare earths and other metals critical minerals.
