USA Rare Earth Secures Up to $1.6 Billion in Funding from U.S. Department of Commerce

Summary

USA Rare Earth, Inc. has entered into definitive agreements with the U.S. Department of Commerce, unlocking access to up to $1.6 billion in funding under the CHIPS Program. The agreements include a Direct Funding Agreement for up to $277 million in federal funding and a Loan Guarantee Agreement for up to $1.3 billion in senior secured loan capacity under the CHIPS Act. Disbursements are tied to the achievement of project milestones. Additionally, USA Rare Earth will issue 16.1 million shares of common stock and approximately 17.6 million warrants to the Department of Commerce. Combined with previous capital raises, total committed capital supporting USA Rare Earth's growth plan is approximately $3.5 billion.