USA Rare Earth Stock Soars 20% on Federal Equity Deal

USA Rare Earth experienced a significant market rally on January 26, 2026, with shares climbing 20% following a major announcement. The surge was driven by news that the Commerce Department has taken an equity stake in the company, signaling strong federal support for domestic critical mineral production.

This capital infusion represents a pivotal moment for the company's ambitious development plans. The investment is specifically earmarked to accelerate the construction of a magnet manufacturing facility and the development of a mine at the Round Top rare earth deposit in Texas.

The federal equity investment provides crucial funding for USA Rare Earth's operational expansion. This financial backing is designed to de-risk and fast-track the company's two primary projects: a state-of-the-art magnet plant and the development of the Round Top deposit.

The Round Top site in Texas is a significant rare earth deposit, and the capital will be used to bring it into production. Simultaneously, the company is advancing plans for a magnet manufacturing plant, a critical component in the supply chain for electric vehicles and defense technologies.

• Capital infusion from the Commerce Department
• Equity stake taken by the federal government
• Funding for Round Top mine development
• Support for magnet manufacturing plant

The Round Top deposit is central to USA Rare Earth's strategy. Located in Texas, this rare earth deposit contains materials essential for high-tech and green energy applications. The new funding will enable the company to move from planning phases into active mine development.

Developing domestic rare earth mining capabilities is a strategic priority. By securing the supply chain for these critical minerals, the project aims to reduce reliance on foreign sources and bolster national security. The mine's development is a key step in establishing a fully integrated U.S.-based supply chain.

The investment in USA Rare Earth is part of a larger effort to rebuild the United States' industrial base for critical minerals. The Commerce Department's direct equity stake highlights the government's commitment to securing supply chains for materials vital to national defense and the clean energy transition.

By funding both mining and processing, the initiative supports a mine-to-magnet strategy. This integrated approach ensures that raw materials sourced from Round Top can be processed and manufactured into finished products domestically, creating a resilient and secure supply chain.

The capital infusion will help USA Rare Earth advance its plan for a magnet manufacturing plant and a mine at a rare earth deposit in Texas called Round Top.

The 20% jump in USA Rare Earth's share price reflects investor confidence in the company's strengthened financial position and strategic direction. The government's backing reduces project risk and validates the technical and economic viability of the Round Top development.

This move may signal a new era of public-private partnerships in the critical minerals sector. It demonstrates how federal investment can catalyze private capital and accelerate the development of projects deemed essential for economic and national security.

The partnership between USA Rare Earth and the Commerce Department marks a significant milestone in the effort to establish a domestic critical minerals supply chain. With secured funding, the company is now positioned to advance its projects at the Round Top deposit and magnet plant.

Key developments to watch include progress on mine permitting, construction timelines for the manufacturing facility, and further announcements regarding the federal government's role in supporting the critical minerals sector. This deal sets a precedent for future investments aimed at securing essential resources.