Jan 26 (Reuters) - Shares of USA Rare Earth (USAR.O) , opens new tab jumped more than 30% before the bell on Monday as the miner unveiled a proposal for $1.6 billion in funding from the U.S. ‌Department of Commerce.

The announcement followed a Reuters report over the weekend that the Trump administration was taking a 10% stake in the miner as part of the debt-and-equity investment package.

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The move is the latest by Washington to deepen its presence in critical minerals, after last year's ‌equity stakes in MP Materials (MP.N) , opens new tab, Lithium Americas (LAC.TO) , opens new tab and Trilogy Metals (TMQ.TO) , opens new tab.

USA Rare Earth said the letter of intent for the deal includes $277 million in proposed federal funding and $1.3 billion in a proposed senior secured loan under the CHIPS Act.

The miner also ‍said it had raised a private investment in public equity (PIPE) for $1.5 billion, anchored by Inflection Point. The PIPE deal, along with the proposed government investment, would bring the total amount to $3.1 billion.

USA ⁠Rare Earth has been developing a mine in Sierra Blanca, Texas, with Texas Mineral ‍Resources (TMRC.PK) , opens new tab, that is slated to open by 2028. It has a magnet manufacturing facility in Stillwater, Oklahoma, ‌which ‌is expected to launch later this year.

A senior Trump official said last month the administration was planning more "historic deals" with the U.S. mining sector.

Rare earths, a group of 17 elements, or the magnets which they are sometimes made into are used in everything from iPhones ⁠and washing machines ⁠to F-35 fighter jets, as well as in electric vehicles, medical equipment and military systems.

Shares of rare earths miners surged in 2025, driven by tightening global supplies and a worldwide race to secure the critical mineral ‍resource to curb reliance on China.

Trump's recent gambit of buying resources-rich Greenland further fueled gains in rare earths stocks this year.

Shares of USA Rare Earth were last up 20.5% before the bell, positioning the stock to build on its more than 100% jump so far ‍in January.

U.S.-listed shares of Trilogy Metals, Lithium Americas and MP Materials also rose between 3% and 8%.

https://www.reuters.com/business/energy/usa-rare-earth-shares-surge-report-trump-administration-investment-2026-01-26/