{"id":424319,"date":"2026-02-02T12:28:38","date_gmt":"2026-02-02T11:28:38","guid":{"rendered":"https:\/\/climatescience.press\/?p=424319"},"modified":"2026-02-02T12:28:51","modified_gmt":"2026-02-02T11:28:51","slug":"trump-admin-uses-equity-stakes-new-mines-to-secure-critical-minerals-supply-chain","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=424319","title":{"rendered":"Trump Admin Uses Equity Stakes, New Mines to Secure Critical Minerals Supply Chain"},"content":{"rendered":"\n
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The Trump administration announced a major $1.6 billion funding package for USA Rare Earth (NASDAQ: USAR) on January 26, 2026. This deal, structured through a non- binding Letter of Intent (LOI) with the U.S. Department of Commerce’s CHIPS Program, aims to accelerate domestic production of rare earth elements, processing, metal- making, and permanent magnet manufacturing- key steps to reduce U.S. reliance on China, which dominates global supply (especially for heavy rare earths used in defense, EVs, semiconductors, wind turbines, and other high-tech applications).<\/p>\n\n\n\n

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Watts Up With That?<\/a><\/p>\n\n\n\n

Trump administration announced a $1.6 billion deal with USA Rare Earth for development of mines, magnet production, and enhanced rare earths processing techniques.<\/em><\/strong><\/p>\n\n\n\n

Posted by Leslie Eastman<\/a> <\/p>\n\n\n\n

Since the beginning of President Donald Trump\u2019s second term, the administration has been aggressively pursuing the <\/a>development<\/a> of new mines for critical minerals and rare earths, wherever they can be found (and, in particular, if the source is American or a relatively trusted ally).<\/p>\n\n\n\n

This move is directly tied to China\u2019s efforts to weaponize its supply chain through tariffs and export controls<\/a>.<\/p>\n\n\n\n

Thes new or returning operations include those of the Mountain Pass mine in California<\/a>, which is funded via a public\u2011private partnership with the Department of Defense that has $400\u202fmillion equity stake. There are other operations in Utah<\/a> that have received federal approval, and a new mining road in Alaska is now permitted to enable the successful extraction of resources<\/a> for American use<\/a>.<\/p>\n\n\n\n

Significant progress has been made in building an American supply chain our nation can rely on to produce equipment for defense, communications, and other high-tech applications. For example, we now have the start of a\u00a0USA- made supply chain for lithium batteries<\/a>.<\/p>\n\n\n\n

The Trump administration isn\u2019t slowing down, either. It hassigned a non\u2011binding agreement to support USA Rare Earth Inc. (USAR) with up to $277 million in direct federal funding and up to $1.3 billion in loans, aimed at building a domestic \u201cmine\u2011to\u2011magnet\u201d rare earths<\/a> and permanent magnet supply chain in this country.<\/p>\n\n\n\n

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The deal adds to the administration\u2019s growing portfolio of equity stakes in private companies, and it would help expand domestic production of a critical input for cars, robots, semiconductors, drones and other products. China, which dominates the production of rare earth minerals and magnets,\u00a0began clamping down<\/a>\u00a0on its export last year, and companies\u00a0have struggled<\/a>\u00a0to find other sources of supply.<\/strong><\/p>\n\n\n\n

The Commerce Department, which arranged the financing through a semiconductor investment program set up during the Biden administration, said it had signed a nonbinding letter of intent to provide the funding, subject to further due diligence and approvals. The deal will give the Commerce Department approximately 16 million shares in the company, as well as a warrant to acquire another 17.6 million shares, the department said.<\/strong><\/p>\n\n\n\n

Howard Lutnick, the secretary of commerce, said in a statement that the company\u2019s project was essential to \u201crestoring U.S. critical mineral independence.\u201d The investment \u201censures our supply chains are resilient and no longer reliant on foreign nations,\u201d he said.<\/strong><\/p>\n<\/blockquote>\n\n\n\n

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\ud83d\udea8 $USAR<\/a> USA Rare Earth \ud83c\udfd4\ufe0f

The United States acquired 10% of $USAR<\/a> over this past weekend, for $1.5 billion.

CHIPS Act money is now an "input." The letter of intent ties rare earths\/metals into semiconductor supply chains (and the govt takes equity + warrants). pic.twitter.com\/lPlACAuizN<\/a><\/p>— Michael, CPA (@MacGillivrayCPA) January 26, 2026<\/a><\/blockquote>