USA Rare Earth stock surged over 14% after securing a $1.6 billion investment from the Department of Commerce in exchange for equity. Industry peers MP Materials, Energy Fuels, and Trilogy Metals also saw gains. The deal includes a $1.3 billion loan and $277 million in federal funding. USA Rare Earth plans to issue shares and warrants to the Department of Commerce as part of the agreement. Additionally, the company announced a $1.5 billion capital raise to accelerate its operations in mining, processing, and metal-making, including a magnet manufacturing plant in Oklahoma and a deposit in Texas. The US government’s investment in rare earth companies is part of efforts to reduce China’s dominance in the sector. Last year, the government also acquired stakes in Lithium Americas and Trilogy Metals. Rare earth minerals are crucial for sectors like AI, defense, energy, and technology infrastructure. The growing US investment in rare earth miners is seen as a positive development that reduces project risks and enhances revenue visibility. President Trump hinted at a future deal with NATO involving rights to rare-earth minerals. The move underscores the strategic importance of these minerals in various industries.

Read more at Yahoo Finance: Rare earth stocks jump as Trump administration takes stake in miner in $1.6 billion deal