USA Rare Earth Secures Major Government Funding to Boost Domestic Rare Earth Production

The young company aims to ramp up rare earth mineral extraction and magnet manufacturing to support the U.S. tech industry.

Jan. 28, 2026 at 3:31am

Got story updates? Submit your updates here. ›

USA Rare Earth, a startup based in Stillwater, Oklahoma, has secured $277 million in federal funding and a $1.3 billion senior secured loan from the Department of Commerce to boost domestic rare earth mineral production. The company, which has a large rare earth deposit in western Texas, plans to use the funding to rapidly expand its mining operations and magnet manufacturing plant. This investment comes as the U.S. government looks to reduce reliance on China, which currently dominates global rare earth production.

Why it matters

Rare earth minerals are critical components for a wide range of advanced technologies, including electronics, electric vehicles, renewable energy, and military equipment. With China controlling the majority of global rare earth supply, the U.S. government sees domestic production as a national security priority. USA Rare Earth's expansion could help the U.S. reduce its dependence on foreign sources of these vital materials.

The details

USA Rare Earth, founded in 2019, is working to extract 15 of the 17 rare earth elements from its Round Top deposit in Texas. The company is also building a magnet manufacturing plant in Stillwater, Oklahoma that it hopes to bring online in 2026. With the new government funding, USA Rare Earth plans to ramp up extraction at Round Top to 40,000 metric tons per day. The Department of Commerce has also agreed to establish a price floor of $110 per kilogram for the company's neodymium and praseodymium magnets, providing additional financial support.

  • USA Rare Earth was founded in 2019.
  • The company went public in March 2025.
  • The Department of Commerce announced its funding and loan package in January 2026.
  • USA Rare Earth plans to begin operations at its Round Top deposit in 2028.
  • The company aims to bring its Stillwater magnet manufacturing plant online in the first half of 2026.

The players

USA Rare Earth

A startup based in Stillwater, Oklahoma that is working to extract rare earth minerals from a large deposit in western Texas and manufacture rare earth magnets.

Department of Commerce

A U.S. government agency that has agreed to provide $277 million in federal funding and a $1.3 billion senior secured loan to USA Rare Earth to support the company's rare earth production efforts.

MP Materials

Another American-based rare earths company that received a $400 million investment from the Department of Defense/Department of War in 2025 and had a price floor of $110 per kilogram established for its neodymium and praseodymium magnets.

Inflection Point

A private investment firm that anchored a $1.5 billion common stock PIPE (private investment in public equity) deal with USA Rare Earth.

Got photos? Submit your photos here. ›

What they’re saying

“We must reduce our reliance on China for these critical materials that are vital to our economy and national security.”

— Gina Raimondo, U.S. Secretary of Commerce

What’s next

USA Rare Earth plans to begin operations at its Round Top rare earth deposit in 2028 and ramp up production to 40,000 metric tons per day. The company also aims to bring its Stillwater, Oklahoma magnet manufacturing plant online in the first half of 2026.

The takeaway

The U.S. government's substantial investment in USA Rare Earth underscores the strategic importance of domestic rare earth production. By supporting the development of this young company, the government is taking steps to reduce America's reliance on China for these critical materials that are essential to the tech industry and national defense.