USA Rare Earth shares soared as much as 62% in premarket trading Monday following reports of a major government investment. The Trump administration is taking a 10% stake in the mining company through a $1.6 billion debt-and-equity package.
The deal positions Washington as the largest public shareholder of USA Rare Earth. The company will host a Monday morning conference call to discuss the investment terms.
Under the agreement, the administration will receive 16.1 million shares in the company. Washington also gets warrants for an additional 17.6 million shares. Both the shares and warrants are priced at $17.17 each, close to the company’s recent trading levels.
BREAKING: The Trump administration plans a $1.6 Billion investment in USA Rare Earth $USAR for a 10% stake, per FT.
The stock was up nearly 50% last week
US rare earth supply is now a priority
pic.twitter.com/umzgNNRm59
— Trader Edge (@Pro_Trader_Edge) January 25, 2026
A separate $1 billion private investment accompanies the government package. Details of this additional funding will be revealed during Monday’s announcement.
USA Rare Earth has been working with Texas Mineral Resources to develop a mine in Sierra Blanca, Texas. The facility is scheduled to open by 2028. The company also operates a magnet manufacturing facility in Stillwater, Oklahoma, set to launch later this year.
The investment marks another step in the Trump administration’s strategy to expand its footprint in critical minerals. Last year, Washington took equity stakes in MP Materials, Lithium Americas, and Trilogy Metals.
A senior Trump official stated last month that more deals with the U.S. mining sector were in the works. These investments aim to boost domestic production of rare earths and other minerals used in national defense and artificial intelligence.
Rare earths are a group of 17 elements used in everything from iPhones to F-35 fighter jets. They’re critical components in electric vehicles, medical equipment, and military systems. China currently dominates global rare earth processing, which has driven Washington’s push for domestic sources.
Shares were last up 38.5% before the bell Monday morning. The stock has already climbed more than 100% in January alone.
Other rare earth mining stocks also benefited from the news. U.S.-listed shares of Trilogy Metals, Lithium Americas, and MP Materials rose between 5% and 12.4%.
Rare earth mining stocks surged throughout 2025. Tightening global supplies and international competition for critical minerals drove the gains. Trump’s recent interest in acquiring resource-rich Greenland further boosted the sector this year.
USA Rare Earth hired Cantor Fitzgerald to assist with fundraising efforts. The financial services firm is chaired by Brandon Lutnick, son of U.S. Secretary of Commerce Howard Lutnick.
The company will provide full details of both investment packages during Monday’s investor conference call.
The post USA Rare Earth (USAR) Stock Soars Pre-Market as Trump Administration Takes 10% Stake appeared first on CoinCentral.
Also read: Why Is Japan Going All In On XRP? Expert Exposes What’s Going On Behind The Scenes
