<div id="readability-page-1"><p>The U.S. government plans to invest $1.6 billion in USA Rare Earth, a private miner based in Oklahoma, according to a <em>Financial Times</em> report. In return, the government would receive about 10% of the company through shares and warrants priced at $17.17. In addition, the company is set to announce a separate $1 billion private funding round. The White House and USA Rare Earth did not comment on the report.</p><h3>Claim 50% Off TipRanks Premium</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <p>According to the report, the deal is aimed at &#34;onshoring critical and strategic minerals essential to the semiconductor supply chain and U.S. national security.&#34;<br/>Notably, the investment is tied to the Commerce Department CHIPS office, which supports domestic chip and equipment projects. As a result, rare earth minerals are now being treated as part of the same supply chain as chips and AI hardware.</p> <p>USA Rare Earth is developing a mine in Texas and a magnet plant in Oklahoma, with commercial output expected to begin in the first half of 2026. The company has a market value of about $3.45 billion and focuses on neodymium magnets used in EVs, defense gear, and data centers.</p> <h2><strong>Market impact and public companies to watch</strong></h2> <p>This move follows similar government stakes taken last year in MP Materials Inc (MP), Lithium Americas Corp (LAC), and Trilogy Metals Inc (TMQ). Together, these deals show a steady policy shift toward direct support for U.S. mineral supply.</p> <p>For investors, this trend could benefit firms tied to EVs, AI, and chip tools.<br/>Tesla (TSLA) relies on rare-earth magnets for its motors, while Nvidia (NVDA) depends on secure chip supply for its AI systems. Likewise, Advanced Micro Devices Inc (AMD) and Intel (INTC) could gain from a more stable domestic supply chain.</p> <p>Meanwhile, the government's role may reduce funding risk for miners and speed up project timelines. However, it may also raise closer oversight and tighter rules over time.<br/>Overall, the deal signals that critical minerals are becoming a long-term focus for U.S. industrial policy and market planning.</p> <p>Using TipRanks' Comparison Tool, we've assembled all the tickers mentioned in the piece to gain an in-depth view of each stock and the broader energy and EV industries.</p></div>

<p>The U.S. government is investing $1.6 billion in USA Rare Earth, acquiring about 10% of the company. This investment aims to secure critical minerals for the semiconductor supply chain and national security. USA Rare Earth is developing a mine in Texas and a magnet plant in Oklahoma, with output expected by 2026. This move aligns with a trend of government support for U.S. mineral supply, potentially benefiting companies like Tesla, Nvidia, AMD, and Intel. The deal indicates a long-term focus on critical minerals in U.S. industrial policy.</p>

- The U.S. government plans to invest $1.6 billion in USA Rare Earth, acquiring about 10% of the company in return.  
- This investment aims to support the domestic supply of critical minerals essential for the semiconductor industry and national security, with commercial operations expected to start by mid-2026.  
- The deal reflects a broader policy shift towards supporting U.S. mineral supply chains, potentially impacting companies like Tesla, Nvidia, AMD, and Intel.

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U.S. Invests $1.6 Billion in Rare Earths: Impact on Chip and EV Stocks