TLDR
- USA Rare Earth stock jumped as high as 62% premarket Monday on federal investment announcement
- Trump administration acquiring 10% stake for $1.6 billion, plus $1 billion private funding
- Government receiving 16.1 million shares and warrants for 17.6 million more shares at $17.17
- Stock already up over 100% in January before Monday’s premarket gains
- Latest government move after equity stakes in MP Materials, Lithium Americas, and Trilogy Metals
USA Rare Earth stock climbed as much as 62% in premarket trading Monday following news of a major federal investment. The Trump administration is purchasing a 10% stake through a $1.6 billion funding package.
The deal positions the government as the company’s largest public shareholder. USA Rare Earth will discuss investment terms during a Monday morning conference call with investors.
Washington will acquire 16.1 million shares under the agreement. The administration also receives warrants to purchase 17.6 million additional shares. All shares and warrants carry a $17.17 price tag, reflecting where the stock traded earlier this month.
An additional $1 billion private investment will be announced alongside the government package. Both funding sources aim to accelerate the company’s mine and manufacturing operations.
Shares were last up 38.5% before market open. The stock has climbed more than 100% so far in January.
Mine and Manufacturing Plans Moving Forward
USA Rare Earth is building a mine in Sierra Blanca, Texas, with partner Texas Mineral Resources. Operations at the site should begin by 2028.
The company operates a magnet production facility in Stillwater, Oklahoma. This plant is set to launch operations later in 2026.
These 17 elements power everything from consumer electronics to military hardware. Fighter jets, electric vehicles, and medical equipment all require rare earth materials.
China processes the majority of the world’s rare earth supply. This concentration has driven U.S. efforts to develop domestic alternatives.
Building a Critical Minerals Portfolio
The USA Rare Earth investment extends the Trump administration’s critical minerals strategy. The government took stakes in MP Materials, Lithium Americas, and Trilogy Metals during 2025.
An administration official indicated last month that additional mining sector deals were planned. The focus remains on securing domestic supplies of rare earths, lithium, and other materials vital to defense and technology sectors.
USA Rare Earth hired Cantor Fitzgerald to manage its fundraising efforts. Brandon Lutnick chairs the financial services firm. His father Howard Lutnick is the current U.S. Secretary of Commerce.
Broader Market Impact
Other rare earth companies gained on Monday’s news. Trilogy Metals, Lithium Americas, and MP Materials all rose between 5% and 12.4% in U.S. trading.
The rare earth mining sector posted strong returns during 2025. Tightening supplies and global competition for critical minerals resources supported prices throughout the year.
Trump’s statements about acquiring Greenland for its natural resources provided additional momentum. The territory holds reserves of rare earths and other strategic minerals.
Monday’s investor call will cover detailed terms for both the federal and private investment packages.
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