US Invests $1.6B in Oklahoma Rare Earth Miner to Reduce China Reliance

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The U.S. Commerce Department is investing $1.6 billion in Oklahoma-based rare earth miner USA Rare Earth, including $277 million in proposed federal funding and a $1.3 billion senior secured loan. In return, the government will receive 16.1 million shares of common stock and rights to buy 17.6 million more. This is the latest in a series of government investments aimed at reducing U.S. reliance on China for critical minerals used in high-tech products and military equipment.

Why it matters

China currently processes over 90% of the world's critical minerals, giving it significant leverage in trade disputes with the U.S. The Trump administration views reducing this reliance on China as a national security priority, and has been actively investing in domestic rare earth production to bolster the U.S. supply chain.

The details

The agreement with USA Rare Earth is part of the Commerce Department's CHIPS program, which is focused on restoring U.S. critical mineral independence. The investment will support the company's heavy critical minerals project, including advancing work on a mine in Texas and building a magnet manufacturing facility in Oklahoma.

• The U.S. Commerce Department announced the $1.6 billion investment in USA Rare Earth on January 27, 2026.

What they’re saying

What’s next

The Commerce Department's $1.6 billion investment in USA Rare Earth is intended to help advance the company's critical minerals project, including the Texas mine and Oklahoma magnet facility. This is part of the broader U.S. government effort to reduce reliance on China for these strategic materials.