The U.S. buys 10% of USA Rare Earth for $1.6B to boost domestic rare earth supply and cut China dependence.

America. According to several reports, the government is investing $1.6 billion in debt and equity to purchase a 10% share in Oklahoma-based USA Rare Earth in order to increase domestic rare earth production. In order to support a Texas mine that is anticipated to open by 2028 and a magnet facility in Oklahoma that will launch later in 2026, the deal includes 16.1 million shares and warrants for an additional 17.6 million shares at a price of $17.17 each. The investment comes after earlier government investments in MP Materials and other important companies and is part of a larger plan to lessen dependency on China for essential minerals. It seeks to improve supply chains for electronics, defense, and clean energy technologies and is supported by funding from the Science Act and CHIPS. USA Rare Earth and the White House declined to comment.