"US rare earths secure 1.6 billion US federal funding letter of intent"

USA Rare Earth signed a letter of intent to receive $1.6 billion in funding from the U.S. Department of Commerce to improve its domestic supply chain. The company stated that the non-binding letter of intent, signed by the Department of Commerce under the CHIPS Act, includes a proposed $1.3 billion secured senior loan and $277 million in proposed federal funding. USA Rare Earth's stock price rose by 20% in pre-market trading on Monday. As part of the deal, the company will provide the Department of Commerce with 16.1 million shares of stock and approximately 17.6 million warrants. The company also announced that it raised an additional $1.5 billion through a post-listing private placement led by Inflection Point, in conjunction with the signing of the letter of intent. This new funding will allow the company to mitigate risks associated with its growth goals and establish a more resilient domestic supply chain. CEO Barbara Humpton said, "With unprecedented support from both the public and private sectors, we are well positioned to accelerate the development of critical domestic capabilities that are essential for U.S. national security, global economic competitiveness, and future key technologies."