New York, Jan 25, 2026, 12:54 EST — Market closed.
- Sources told Reuters the Trump administration plans to acquire a 10% stake in USA Rare Earth as part of a $1.6 billion deal
- A deal plus a separate $1 billion private investment are set to be announced Monday, with an investor call scheduled to follow
- USAR jumped 9.1% on Friday; traders are now watching for deal details and official confirmation
Shares of USA Rare Earth are set to open Monday with investors digesting news that the Trump administration plans to acquire a 10% stake in the Nasdaq-listed rare earths miner, sources told Reuters. This move comes as part of a $1.6 billion debt-and-equity package, according to two people familiar with the deal. Alongside this, a separate $1 billion private investment is also slated for announcement Monday. The company is expected to hold a morning investor call to discuss the developments.
The stock closed Friday with a 9.1% gain, settling at $24.77.
The timing is key as the report drops just before a new trading week, with Washington stepping up efforts to secure critical minerals supply chains and reduce dependence on China for processing. Rare earths—a set of 17 minerals vital to electronics and military tech—remain largely processed in China.
According to the package detailed to Reuters, Washington is set to get 16.1 million shares of USA Rare Earth along with warrants for an additional 17.6 million shares, both valued at $17.17—a price close to the stock’s level earlier this month. The White House has yet to respond to requests for comment, and the company also declined to comment.
USA Rare Earth is gearing up for a major, capital-intensive project backed by the government: a mine in Sierra Blanca, Texas, developed alongside Texas Mineral Resources, planned to be operational by 2028. Meanwhile, its magnet manufacturing plant in Stillwater, Oklahoma, is set to start production later this year.
Investors saw this step as fitting into a bigger trend. Reuters noted the administration snapped up equity stakes last year in MP Materials, Lithium Americas, and Trilogy Metals. A senior official also hinted at more “historic deals” ahead with the U.S. mining sector. Reuters
The trade cuts both ways. Until the terms are officially announced, investors risk headlines that could shift the deal’s structure, delay timelines, or bring in more fundraising that dilutes current shareholders.
Monday’s action hinges on whether the White House or relevant agencies officially endorse the package. Investors will also be tuned in to USA Rare Earth’s upcoming call, where the company is expected to discuss pricing, covenants, and timelines for the mine and magnet facility.
