SunSirs: U.S. Government to Acquire 10% Stake in U.S. Rare Earths for $ 1.6 Billion

According to comprehensive reports from the U.S. Department of Commerce website, the British "Financial Times", and the website of U.S. Rare Earths on January 25, the U.S. Department of Commerce plans to provide U.S. Rare Earths with $1.6 billion in funds, including $277 million in federal funding support and a $1.3 billion senior guaranteed loan under the "Chips and Science Act". At the same time, U.S. Rare Earths also completed a $1.5 billion common stock PIPE (Private Investment in Public Equity) financing. This is the largest investment by the U.S. government in the rare earth sector to date, and one of the important measures to re-engage in the private sector and ensure the supply of critical minerals in recent times. It is reported that the U.S. government will obtain a 10% stake in U.S. Rare Earths as part of the $1.6 billion debt and equity package investment plan. In addition to the above cooperation, U.S. Rare Earths also signed a letter of intent with the U.S. Department of Energy's National Energy Technology Laboratory (NETL). The two parties will use digital twin technology to advance heavy rare earth separation technology at the laboratory in Colorado and the Round Top deposit in Texas. Through this cooperation, the Department of Energy will participate in the development of a digital twin system to advance rare earth element separation technology, with the ultimate goal of establishing America's first fully localized "mine-to-magnet" supply chain. Subsequently, U.S. Rare Earths officially announced the above-mentioned transaction with the U.S. government on its official website. U.S. Rare Earths stated that the company has signed a non-binding letter of intent (LOI) with the U.S. Department of Commerce and is cooperating with the U.S. Department of Energy (DOE). It is reported that U.S. Rare Earths plans to use this fund for the development of the Round Top deposit. After commercial production is scheduled to start in 2028, 40,000 tons of rare earths and critical mineral raw materials will be extracted from the deposit daily. At the same time, the company will build a plant with an annual capacity of 8,000 tons at Round Top to process third-party mixed rare earth concentrates, heavy rare earth elements and critical mineral oxides, including dysprosium, terbium, gallium and 9 other critical minerals.

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