USA Rare Earth announced a transformative collaboration with the U.S. Government, including a Letter of Intent for $1.6 billion in funding and a $1.5 billion private equity investment. This strategic move aims to accelerate the development of a domestic heavy rare earth value chain, significantly bolstering U.S. national security and industrial competitiveness.
Entered into a non-binding Letter of Intent with the U.S. Department of Commerce for $1.6 billion in CHIPS Program funding, including $277 million in federal funding and a $1.3 billion senior secured loan.
positiveRaised $1.5 billion in a common stock PIPE transaction anchored by Inflection Point and other investors.
positiveAccelerated plans to begin commercial production at Round Top deposit in late 2028, two years earlier than previously anticipated.
positiveClosed the acquisition of LCM, a manufacturer of specialized rare earth metals and alloys.
positiveThe preliminary financial highlights indicate operating expenses and operating loss in the range of $56 million to $62 million for the year ended December 31, 2025.
attentionThe preliminary financial highlights indicate capital expenditures in the range of $37 million to $43 million for the year ended December 31, 2025.
attentionThe LOI with the U.S. Government is non-binding and subject to further diligence, finalization of agreements, customary closing conditions, and approvals.
attentionMargin metrics will be available once backend extracts data from insights_json
This landmark collaboration with the U.S. Government represents a transformative step in USAR’s mission to secure and grow a resilient, independent domestic rare earth value chain.
With this unprecedented show of public and private support for our Company, we are positioned to accelerate the build-out of important domestic capabilities that are essential to U.S. national security, global economic competitiveness, and critical technologies of the future.
USAR and the Department of Commerce will mobilize a multi-year partnership at unprecedented scale and speed to build out capacity across heavy rare earth feedstock, processing, metal, and magnets, and we are proud to partner with the U.S. Government in support of the Company’s next phase of growth.
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