USA Rare Earth Secures up to $1.6 Billion in Federal Funding

Round Top rare earth mineral deposit in West Texas. Courtesy of USA Rare Earth

USA Rare Earth on June 3 announced it had entered into definitive agreements with the U.S. Department of Commerce to access up to $1.6 billion in funding under the department’s CHIPS and Science Act program.

The agreement includes $277 million in federal incentives and up to $1.3 billion in senior secured loan capacity. The funds will be dispersed in phases as USA Rare Earth hits key project milestones in the development of its Round Top mine in Texas and scales magnet manufacturing facilities in Stillwater, Oklahoma, and Blacksburg, South Carolina.