USA Rare Earth Inc. signed a non-binding agreement with the Commerce Department to receive $1.6 billion in funding to accelerate US production of key rare-earth elements.

USA Rare Earth entered into a letter of intent to receive $1.6 billion in funding from the Department of Commerce to improve its domestic supply chain.

The Trump administration is planning to invest $1.6 billion into USA Rare Earth, the Financial Times reported, citing unidentified people familiar with the matter.

The Trump administration plans to provide USA Rare Earth with $1.6 billion in mostly loan financing to extract and process the materials and manufacture rare earth magnets. The non-binding agreement unveiled Monday also includes a roughly 10% equity stake,

USA Rare Earth shares rallied on Monday after the critical minerals startup announced that the Department of Commerce will take an equity stake. Commerce has issued a letter of intent that would provide USA Rare Earth with a $1.

The Trump administration is poised to inject $1.6B into USA Rare Earth (USAR) in exchange for a 10% stake in the company, the U.S. government's biggest investment in the rare earths sector so far, the Financial Times reported Saturday.

The Trump administration is set to take a 10% equity stake in USA Rare Earth as part of a $1.6 billion debt-and-equity investment package designed to strengthen domestic production of rare earth minerals,