USAR•USAR•USA Rare Earth secured up to $1.6 billion in federal backing, including $277 million in direct grants and $1.3 billion in CHIPS Act loans. Combined with $1.5 billion private equity from Jan 2026, the funding supports Round Top’s targeted 2028 commercial debut and domestic processing and magnet manufacturing capacity.
USA Rare Earth entered definitive agreements with the U.S. Department of Commerce to access up to $1.6 billion in funding, comprising $277 million in direct federal grants and $1.3 billion in senior secured loans under the CHIPS Act. Disbursement of these funds will occur in stages upon achievement of specific project milestones.
This federal package complements the $1.5 billion private investment in public equity completed in January 2026, bringing the company’s total committed capital to approximately $3.5 billion. The combined financing strengthens the balance sheet and underpins long-term growth initiatives.
A significant portion of the funding is earmarked for the Round Top heavy rare earth and critical minerals project in Hudspeth County, Texas, with commercial production targeted for 2028. Planned facilities include separation and processing units for dysprosium, terbium, yttrium and other critical minerals.
USA Rare Earth will use the capital to expand domestic capacity via its Less Common Metals subsidiary, aiming for 10,000 metric tons per year of heavy rare earth metals and alloys. The agreements also entail issuing about 16.1 million common shares and 17.6 million warrants to the Commerce Department, with funding tied to development milestones.
