{"id":3754,"date":"2026-01-27T13:06:58","date_gmt":"2026-01-27T13:06:58","guid":{"rendered":"https:\/\/menamagazine.com\/?p=3705"},"modified":"2026-01-27T13:06:58","modified_gmt":"2026-01-27T13:06:58","slug":"us-government-invests-1-6bn-for-stake-in-rare-earths-firm","status":"publish","type":"post","link":"https:\/\/themena.com\/index.php\/2026\/01\/27\/us-government-invests-1-6bn-for-stake-in-rare-earths-firm\/","title":{"rendered":"US government invests $1.6bn for stake in rare earths firm"},"content":{"rendered":"\n

The Trump administration will invest $1.6bn (\u00a31.2bn) in a US critical minerals firm, marking officials’ latest push to reduce China’s dominance over the rare earths sector.<\/strong><\/p>\n\n\n\n

The agreement with USA Rare Earth, which will give the government a stake in the firm, emerged days after US President Donald Trump claimed to have secured the “framework” of a\u00a0deal over Greenland\u00a0– which he said includes access to rare earth minerals.<\/p>\n\n\n\n

It follows similar investments by the US government in minerals companies since Trump returned to the White House a year ago.<\/p>\n\n\n\n

Officials want to boost US production of minerals essential to everything from smartphones to defence technologies.<\/p>\n\n\n\n

USA Rare Earth, which controls deposits of so-called “heavy” rare earths that are often used for defence technologies, said the investment will fund mining, processing, metal-making and magnet manufacturing.<\/p>\n\n\n\n

Commerce Secretary Howard Lutnick, said: “This investment ensures our supply chains are resilient and no longer reliant on foreign nations.”<\/p>\n\n\n\n

The non-binding pledge to invest in the Oklahoma-based firm includes a $1.3bn loan from the Commerce Department as well as $277m in federal funding.<\/p>\n\n\n\n

The company also said on Monday it raised a separate $1.5bn from private investors led by Inflection Point, which is chaired Michael Blitzer who is also chair of USA Rare Earth.<\/p>\n\n\n\n

Shares in the company rose by more than 15% following the announcement.<\/p>\n\n\n\n

Rare earths have emerged as a key bargaining chip in trade negotiations between Washington and Beijing in recent months.<\/p>\n\n\n\n

US companies rely heavily on the materials, leaving them vulnerable as China took steps to restrict supplies in response to US tariffs and other tensions.<\/p>\n\n\n\n

In\u00a0curbing exports, China, which processes around 90% of the world’s rare earths, has sought to pressure the US for better trade terms.<\/p>\n\n\n\n

The US government has been investing in critical mineral firms over the past year.<\/p>\n\n\n\n

It reached a $1.4bn deal with Vulcan Elements, a rare earth magnet start-up, to build domestic supplies.\u00a0It also invested in MP Materials, which owns the US’s only operational rare earths mine.<\/p>\n\n\n\n

China has a near-monopoly on processing rare earths.<\/p>\n\n\n\n

While the US and other countries are investing heavily to develop alternative supply lines, they are\u00a0some way from achieving that goal.<\/p>\n\n\n\n

The Trump administration has also looked to other countries as part of its push to reduce reliance on China for supply of the critical minerals.<\/p>\n\n\n\n

In October, the US and Australia\u00a0signed a deal\u00a0intended to boost supplies of rare earths and other critical minerals.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Trump administration will invest $1.6bn (\u00a31.2bn) in a US critical minerals firm, marking officials’ latest push to reduce China’s dominance over the rare earths…<\/p>\n","protected":false},"author":2,"featured_media":3706,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,16,4,65],"tags":[22,640,641,79],"class_list":["post-3754","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-finance","category-international","category-property","tag-business","tag-critical-minerals","tag-rare-earth-minerals","tag-usa"],"yoast_head":"\nUS government invests $1.6bn for stake in rare earths firm - The MENA News<\/title>\n<meta name=\"description\" content=\"Trump administration to invest $1.6bn (\u00a31.2bn) in US critical minerals firm marking push to reduce China's dominance over rare earths sector\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/themena.com\/index.php\/2026\/01\/27\/us-government-invests-1-6bn-for-stake-in-rare-earths-firm\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US government invests $1.6bn for stake in rare earths firm - 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