USA Rare Earth stock soared by 50% after news broke of a $1.6 billion investment from the Trump administration. This marks the largest government investment in the critical minerals sector to date.

The U.S. government will acquire a 10% stake in the Oklahoma-based rare earths company. According to the Financial Times, the deal includes 16.1 million shares at $17.17 each, along with warrants for an additional 17.6 million shares at the same price.

This investment is a strategic move to strengthen domestic supply chains for critical minerals. The government’s $277 million equity purchase already shows an implied gain of $490 million, with shares now trading at $24.77.

In addition, a $1 billion private financing deal is expected to be announced on Monday. This will further solidify the company’s financial standing.

The stock’s sharp rise reflects growing investor confidence. Federal backing of domestic rare earth production is seen as a key step in reducing U.S. reliance on foreign sources for these essential materials.

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