Rare Earth Stocks Jump as US to Invest $1.6B into Rare Earths Group in Bid to Shore up Key Minerals

Rare earth stocks jumped in premarket trading. USA Rare Earth rose 53%; American Resources rose 14%; NioCorp Developments rose 13%; Trilogy Metals rose 12%; United States Antimony rose 11%; Critical Metals rose 9%; Ramaco Resources rose 8%; Lithium Americas and MP Materials rose 7%; The Metals Company and Energy Fuels rose 6%.

The Trump administration is taking a 10% stake in USA Rare Earth as part of a $1.6 billion debt-and-equity investment package aimed at helping the company develop a domestic mine and magnet facility, two sources familiar with the deal told Reuters.

The deal and a separate $1 billion private investment will be unveiled on Monday and Oklahoma-based USA Rare Earth will host a morning conference call with investors to discuss the terms, according to one of the sources who was briefed on the plans.

China is the largest global processor of rare earths, a group of 17 minerals used to make a range of electronics and military equipment. The U.S. produces only small volumes of rare earths, which has sparked a push in recent years from Washington to increase output.

USA Rare Earth has been developing a mine in Sierra Blanca, Texas, with Texas Mineral Resources that is slated to open by 2028 and has a magnet manufacturing facility in Stillwater, Oklahoma, that is expected to launch later this year.

As part of the USA Rare Earth investment, Washington will receive 16.1 million shares in the company along with warrants for an additional 17.6 million shares, according to the sources. Both would be priced at $17.17 a share, near where the company's stock traded earlier this month.

The Financial Times was first to report on the investment.

The deal is the latest move by the Trump administration to move into the critical minerals space after taking equity stakes last year in MP Materials, Lithium Americas, and Trilogy Metals.