USA Rare Earth Secures $1.6B Federal Funding Package Under CHIPS Act

Deal Summary

USA Rare Earth announced it has secured a $1.6 billion funding package from the U.S. Department of Commerce under the CHIPS Act, comprising $277 million in grants, $1.3 billion in senior secured loans, and a 10% equity stake purchased for $300 million. The funding will support the commissioning of its Colorado processing plant and a $1.2 billion expansion in South Carolina.