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USA Rare Earth Secures $1.6B to Advance Rare Earth Value Chain
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Key Takeaways
USA Rare Earth gained access to up to $1.6 billion in CHIPS Program funding and loan support.
USAR now has about $3.5 billion in committed capital after a January 2026 private raise.
USAR plans to advance the Round Top project and expand U.S. processing and magnet facilities.
USA Rare Earth, Inc. (USAR - Free Report) has strengthened its financial position after securing access to up to $1.6 billion in government-backed funding under the CHIPS Program from the U.S. Department of Commerce. The package includes up to $277 million in federal funding and up to $1.3 billion in loan support as the company advances key development milestones.
The funding is expected to support USA Rare Earth expand its operations across the rare earth supply chain, including mining, processing, metal production and magnet manufacturing. Together with the $1.5 billion private capital raise completed in January 2026 and earlier fundraising efforts, the company now has about $3.5 billion in committed capital. USAR plans to use the capital to advance mining activities, expand processing capabilities and increase production of rare earth magnets in the United States.
A major focus of the investment is the development of the Round Top project in Texas, which is expected to begin commercial production in 2028. The funding will also support facilities for processing rare earth materials, producing metals and alloys, and increasing magnet manufacturing capacity in Oklahoma and South Carolina.
Also in May 2026, USAR was selected to secure a maximum of $19.3 million in funding from the U.S. Department of Energy (DOE). The funding will help advance the development of rare earth element (REE) processing capabilities in the United States. The funding is subject to final approval.
Snapshot of USAR's Peers
Among its major peers, MP Materials Corp. (MP - Free Report) has received federal support to strengthen rare earth processing and magnet manufacturing in the United States. MP Materials has been expanding domestic production capabilities to support industries such as electric vehicles, renewable energy, electronics and defense. These efforts by MP Materials are aimed at reducing dependence on overseas rare earth supply chains and improving supply security.
Energy Fuels Inc. (UUUU - Free Report) has been expanding its rare earth processing efforts as part of a strategy focused on critical minerals. Energy Fuels is working to strengthen domestic and North American supply capabilities for materials used in clean energy, technology and defense industries. These initiatives reflect growing efforts to build a more secure and diversified critical minerals supply chain.
USAR’s Price Performance, Valuation & Estimates
Shares of USAR have gained 58.3% in the past six months compared with the industry’s growth of 32.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 83.20X against the industry’s average of 15.69X. USA Rare Earth has a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for USAR’s 2026 earnings has decreased over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #4 (Sell).
View the Zacks #1 Rank List
Image: Bigstock
USA Rare Earth Secures $1.6B to Advance Rare Earth Value Chain
Key Takeaways
USA Rare Earth, Inc. (USAR - Free Report) has strengthened its financial position after securing access to up to $1.6 billion in government-backed funding under the CHIPS Program from the U.S. Department of Commerce. The package includes up to $277 million in federal funding and up to $1.3 billion in loan support as the company advances key development milestones.
The funding is expected to support USA Rare Earth expand its operations across the rare earth supply chain, including mining, processing, metal production and magnet manufacturing. Together with the $1.5 billion private capital raise completed in January 2026 and earlier fundraising efforts, the company now has about $3.5 billion in committed capital. USAR plans to use the capital to advance mining activities, expand processing capabilities and increase production of rare earth magnets in the United States.
A major focus of the investment is the development of the Round Top project in Texas, which is expected to begin commercial production in 2028. The funding will also support facilities for processing rare earth materials, producing metals and alloys, and increasing magnet manufacturing capacity in Oklahoma and South Carolina.
Also in May 2026, USAR was selected to secure a maximum of $19.3 million in funding from the U.S. Department of Energy (DOE). The funding will help advance the development of rare earth element (REE) processing capabilities in the United States. The funding is subject to final approval.
Snapshot of USAR's Peers
Among its major peers, MP Materials Corp. (MP - Free Report) has received federal support to strengthen rare earth processing and magnet manufacturing in the United States. MP Materials has been expanding domestic production capabilities to support industries such as electric vehicles, renewable energy, electronics and defense. These efforts by MP Materials are aimed at reducing dependence on overseas rare earth supply chains and improving supply security.
Energy Fuels Inc. (UUUU - Free Report) has been expanding its rare earth processing efforts as part of a strategy focused on critical minerals. Energy Fuels is working to strengthen domestic and North American supply capabilities for materials used in clean energy, technology and defense industries. These initiatives reflect growing efforts to build a more secure and diversified critical minerals supply chain.
USAR’s Price Performance, Valuation & Estimates
Shares of USAR have gained 58.3% in the past six months compared with the industry’s growth of 32.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 83.20X against the industry’s average of 15.69X. USA Rare Earth has a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for USAR’s 2026 earnings has decreased over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.