USA Rare Earth, Inc. (NASDAQ:USAR) is one of the best manufacturing stocks to invest in now. On January 24, USA Rare Earth, Inc. (NASDAQ:USAR), received a significant boost in its bid to develop a rare-earth mineral site in Sierra Blanca, Texas. The United States government announced plans to take a 10% stake in the company as part of a $1.6 billion debt-and-equity investment package.
With the $1.6 billion debt-equity investment, the US government is to receive 16.1 million shares in the company and an additional 17.6 million shares. The investment is part of the Trump administration’s bid to secure critical minerals for national security.
To complement the federal support, the company has secured $1.5 billion in private investment from institutional backers. The investment brings a $3.1 billion capital injection to help accelerate the company’s mine-to-magnet projects in Texas.
“USA Rare Earth’s heavy critical minerals project is essential to restoring U.S. critical mineral independence,” said U.S. Secretary of Commerce Howard Lutnick. “This investment ensures our supply chains are resilient and no longer reliant on foreign nations.”
The significant capital injection will help the company develop its domestic mine and magnet facility. The company has been developing the Sierra Blanca mine, which is slated to open in 2028. The company also owns a magnet manufacturing facility in Stillwater, Oklahoma.
USA Rare Earth, Inc. (NASDAQ:USAR) is a vertically integrated American company developing a domestic supply chain for rare earth magnets, spanning from mining to finished product. It focuses on producing neodymium and other heavy rare earth elements at its Round Top Mountain project in Texas and on manufacturing permanent magnets in Stillwater, Oklahoma.
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