USA Rare Earth $1.6bn US stake: mine‑to‑magnet project lens for engineers
Reviewed by Joe Ashwell
First reported on MINING.com
30 Second Briefing
The US Department of Commerce has agreed a non-binding $1.6 billion package for USA Rare Earth under the CHIPS programme, combining $277 million in federal funding with a $1.3 billion senior secured loan and taking a 10% equity stake via 16.1 million shares plus 17.6 million warrants at $17.17. Together with a separate $1.5 billion PIPE at $21.50 per share, USAR could raise $3.1 billion to accelerate its Round Top project in Texas, targeting 40,000 t/d of feed and 8,000 tpa of processed rare earth products by 2030. The funding underpins a US “mine-to-magnet” chain including a 5,000 tpa NdFeB magnet plant in Stillwater, Oklahoma (planned to double to 10,000 tpa), HREE metal and alloy capacity via Less Common Metals (10,000 tpa), and DOE-backed digital twin work on HREE separation at Wheat Ridge, Colorado.
Technical Brief
- Round Top mine at Sierra Blanca, Texas, is scheduled to start rare earth production in late 2028.
- Deposit is HREE‑rich, including dysprosium, targeting permanent magnet supply for EVs, wind and defence.
- Stillwater, Oklahoma NdFeB magnet plant (5,000 tpa capacity) is due to enter commercial operation this year.
- Wheat Ridge, Colorado facility functions as a processing and separation laboratory for HREE flowsheet development.
- Integrated mine–lab–metal–magnet chain reduces logistics risk versus importing separated oxides or finished magnets from overseas.
Our Take
In our database of 748 Mining stories, USA Rare Earth is one of only a few rare earth element players (alongside MP Materials and Lithium Americas) receiving direct US government backing, signalling that Round Top in Texas is being positioned as a strategic counterweight to foreign-controlled heavy rare earth supply.
The new $1.3 billion senior secured loan and 10% government equity stake come shortly after USA Rare Earth’s move into France with the Lacq metals and alloys plant and its EPCM appointments for Round Top, suggesting Washington is effectively underwriting a multi-node NdFeB magnet and heavy rare earth chain spanning Texas, Colorado, Oklahoma and Europe.
With Round Top’s commercial production already pulled forward to late 2028 in earlier coverage, this $3.1 billion potential capital-raising envelope reduces financing risk on the accelerated schedule and likely puts competitive pressure on higher-cost or single-asset rare earth projects that lack similar state-backed offtake or funding support.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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