NEW YORK, January 25, 2026, 04:48 (EST) — Market closed
- USAR surged 9.1% Friday, closing at $24.77 on strong volume
- Sources told Reuters the U.S. is set to take a 10% stake in a $1.6 billion deal, with details expected Monday
- Investors are focused on the financing terms, possible dilution, and any filings that cement the figures
USA Rare Earth (USAR.O) is set to draw attention when U.S. markets reopen Monday, after two sources told Reuters the Trump administration intends to buy a 10% stake in the firm as part of a $1.6 billion funding deal. Shares jumped 9.1% on Friday, closing at $24.77.
The context is as much strategic as it is financial. Rare earths—a set of 17 minerals—are embedded in magnets and components powering everything from consumer electronics to military equipment. Washington has ramped up pressure to favor “buy here” supply chains.
For USAR holders, the key issues are timing and control. A federal anchor investor can reduce funding risks for projects that span years, but this often means accepting conditions, oversight, and potentially a bigger share count later on.
One source revealed the package, along with a separate $1 billion private investment, will be announced Monday. USA Rare Earth is set to hold a morning conference call with investors to break down the details. The White House has yet to respond to requests for comment, and the company declined to provide any statement.
The government is set to get 16.1 million shares along with warrants for an additional 17.6 million shares, each valued at $17.17 per share, according to sources. Warrants allow holders to purchase shares later at a predetermined price, potentially diluting current investors if they choose to exercise them.
The Financial Times says the package features $1.3 billion in senior secured loans, backed by a facility set up under the CHIPS and Science Act. It also notes that USA Rare Earth must raise at least $500 million in private capital to complete the deal.
USA Rare Earth has kicked off new engineering efforts at its Round Top project in Sierra Blanca, Texas. The company tapped Fluor and WSP Global as EPCM partners—handling engineering, procurement, and construction management—for a definitive feasibility study that includes a thorough cost and design review. “Fluor and WSP are key partners with the experience and expertise required to move Round Top toward commercial delivery,” said Alex Moyes, vice president of mining and processing. GlobeNewswire
USAR’s market cap is roughly $3.66 billion, with shares swinging from $5.56 up to $43.98 in the last 52 weeks—a clear sign of rapid shifts in sentiment.
The funding package hasn’t been disclosed yet, and the final terms may still change. The company’s mine and magnet projects span several years, with rare-earth ventures often plagued by cost overruns, permitting holdups, and volatile demand that can quickly undercut initial enthusiasm.
Monday’s announcement and the investor call will be closely watched for details on the debt-equity split, conditions linked to federal funds, and the potential volume of new shares entering the market. Traders are also on alert for any SEC filings that officially document the stake, warrants, and private placement.
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