Trump Bets $1.6B to Boost US Rare Earth Supply Chain
Trump Bets $1.6B to Boost US Rare Earth Supply Chain
The administration takes a 10% stake in USA Rare Earth as part of a $1.6 billion package to accelerate domestic mining and magnet manufacturing, reducing reliance on China.
Washington is accelerating its push to secure critical minerals by proposing a $1.6 billion package that includes a 10 percent equity stake in USA Rare Earth. The move is part of a broader strategy to shore up a domestic rare earth supply chain for defense, AI and clean energy technologies, while countering China’s dominance in processing and refining. USA Rare Earth, an Oklahoma‑based company, is advancing a mine at Sierra Blanca in Texas in partnership with Texas Mineral Resources, with production targeted for 2028. The plan also calls for a magnet manufacturing facility in Stillwater, Oklahoma, which is expected to begin operations later this year. If finalized, the investment marks another instance of the government taking an ownership position in a mining company as critical minerals rise in geopolitical importance.
Rare earths include 17 elements essential to everything from smartphones and electric vehicles to missile guidance systems and fighter jets. China currently dominates the processing capacity for many of these materials, leaving the United States more exposed to supply shocks. The new package aims to accelerate domestic mining and magnet production, reinforcing supply resilience for industries that rely on these minerals.
Beyond the economics, the deal signals a strategic shift toward public-private collaboration to secure critical minerals, with potential implications for jobs, regional development and national security. Investors will be watching closely as terms are outlined and timelines confirmed, including the 2028 production target and the operation timeline for the Stillwater plant as demand for rare earths continues to grow.
