Trump administration invests in another US rare earth miner to loosen China’s grip on supply
(ASSOCIATED PRESS) – Sources from Associated Press say the U.S. is taking a minority stake in an Oklahoma rare earth miner, the latest government investment in the sector as it seeks to minimize its reliance on imports of a material used prevalently in smartphones, robotics, electric vehicles and many other high tech products.
China processes more than 90% of the world’s critical minerals and has used its dominance in the market to gain leverage in the trade war with Washington.
USA Rare Earth said Monday that the U.S. Commerce Department is investing $1.6 billion in the company to advance work on a mine in Texas and to build a magnet manufacturing facility in Oklahoma.
Shares of USA Rare Earth jumped more than 13% before U.S. markets opened.
The agreement with the Commerce Department’s CHIPS program includes $277 million in proposed federal funding and a $1.3 billion senior secured loan. The Commerce Department will get 16.1 million shares of common stock in return, as well as rights to buy 17.6 million more.
“USA Rare Earth’s heavy critical minerals project is essential to restoring U.S. critical mineral independence,” Secretary of Commerce Howard Lutnick said in a statement. “This investment ensures our supply chains are resilient and no longer reliant on foreign nations.”
