USA Rare Earth eyes $3 billion-plus funding to accelerate plans

Bloomberg News | February 3, 2026 | 2:34 pm Critical Minerals USA Rare Earth

USA Rare Earth sintered neo magnet manufacturing facility in Stillwater

USA Rare Earth’s magnet manufacturing facility in Stillwater, Oklahoma. (Credit: USA Rare Earth)

USA Rare Earth (Nasdaq: USAR) has more than $3 billion in potential funding for its plans to build a domestic rare-earth and critical mineral supply chain, according to Chief Executive Officer Barbara Humpton.

The prospective funds include as much as $1.6 billion from the Department of Commerce and the rest from the private sector, Humpton said in an interview Tuesday with Bloomberg Television, Accelerated plans would see its Round Top deposit come on stream in 2028, she said.

“The defense sector knows that they need to chose different sources of supplies from China,” she said. “The conversations we are having today say that they are willing to make commitments years from now in order to ensure that supply.”

USA Rare Earth’s ambitious plans for domestic supply chain

USA Rare Earth is benefiting from Washington’s push to reduce reliance on Chinese rare-earth supply chains for everything from semiconductors to fighter jets. Its shares rose as much as 19% on Tuesday after the administration announced a $12 billion critical mineral reserve initiative.

To be sure, the federal funding is subject to achieving milestones and private backing is yet to be set in stone. Still, the funds would allow the company to accelerate its plans, Humpton said.

(By James Attwood, Romaine Bostick and Katie Greifeld)