USA Rare Earth Inc. announced a partnership with the U.S. Department of Commerce, which intends to provide a $1.3 billion loan and $277 million in federal funding to the company. In return, the government would acquire an equity stake ranging from 8% to 16%. Following this news, shares of USA Rare Earth surged over 20%.
This funding aims to expedite the development of a rare earth magnet manufacturing plant in Oklahoma and a mine in Texas. The magnet facility is projected to become operational by early 2026, critical for securing domestic supply chains for advanced technologies, including artificial intelligence, where rare earth magnets play a vital role.
Historically, the Manhattan Project employed over 130,000 individuals and spanned numerous facilities, underscoring the scale and urgency of government-backed initiatives. With the U.S. looking to achieve artificial intelligence supremacy, this latest move mirrors past efforts to mobilize resources quickly under high-stakes conditions.
