USAR stock moved sharply higher after the Trump administration unveiled a major investment plan involving USA Rare Earth. The $1.6 billion transaction positions the U.S. government as a strategic shareholder with an ownership stake of roughly 10%.
The structure of the deal blends equity with long term financing, signaling federal support for domestic rare earth production. Markets responded quickly as investors priced in stronger balance sheet stability and long term growth potential for USAR stock.
Key Details of the Investment
- About 16.1 million shares issued directly to the government
- Warrants for roughly 17.6 million additional shares
- Warrant exercise price set at $17.17 per share
- Approximately $1.3 billion structured as senior secured debt
- Debt facility backed under the CHIPS and Science Act
Market Reaction Snapshot
| Metric | Update |
| Weekly price move | USAR stock up over 40% |
| Year to date performance | More than doubled |
| Trading volume | Nearly 3x daily average |
| Recent close | Highest in over 3 months |
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The company is building a fully integrated mine to magnet supply chain inside the U.S., with projects spanning Texas mining assets and an Oklahoma magnet facility. USA Rare Earth also named Fluor Corp. and WSP Global as EPC partners.
Rare earth materials produced by the company support electric vehicles, defense systems, wind turbines and advanced semiconductor technologies, reinforcing the strategic importance behind the USAR stock rally.
