en.Wedoany.com Reported - USA Rare Earth (NASDAQ: USAR) has signed a final agreement with the U.S. Department of Commerce for a total of $1.6 billion (€2.2 billion) in funding under the CHIPS Program (full name: "Creating Helpful Incentives to Produce Semiconductors Program"). The funding includes up to $277 million in federal grants and up to $1.3 billion in senior secured loans, disbursed in connection with project milestones.
Combined with $1.5 billion in private capital raised in January 2026, USA Rare Earth will be able to continue building its integrated heavy rare earth mining, metals, and magnetic materials facility. Chairman Michael Blitzer stated that the company's coordination and partnership with the government were key to securing the necessary capital to build a light and heavy rare earth platform, reflecting the scale and urgency required to ensure critical supply chains for long-term economic growth. CEO Barbara Humpton noted that this historic milestone was achieved as the company moves from intent to execution alongside the U.S. government; the company is ready to accelerate the construction of a global mine-to-magnet value chain, providing industrial customers with the materials, metals, and magnetic products they need.
The final agreement covers USA Rare Earth's entire integrated value chain, which is planned to be fully operational by 2030. The agreement will support the development of heavy rare earth and critical mineral deposits at the Round Top project in Texas, which is planned to achieve commercial production by 2028. The funding will also support the reshoring of 10,000 tons per year of heavy rare earth element metal manufacturing, alloy manufacturing, and strip casting capacity through its subsidiary Less Common Metals, and expand neodymium-iron-boron magnet manufacturing in Oklahoma and South Carolina. USA Rare Earth is building a fully integrated rare earth and permanent magnet value chain in the United States, the United Kingdom, France, and Brazil.
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