Overview
- The Commerce Department issued a letter of intent for a $1.3 billion loan plus $277 million in federal funding, tied to shares and warrants that could give the U.S. an 8%–16% stake.
- USA Rare Earth completed a PIPE raising about $1.5–$1.6 billion, issuing roughly 69.8 million shares at $21.50 to accelerate its vertically integrated strategy.
- Cantor Fitzgerald raised its price target to $35, citing access to roughly $3.5 billion in capital that refocuses the company on executing magnet production.
- Management guides to starting commercial magnet output in Stillwater, Oklahoma, in 2026 and targeting Round Top mine production in Texas in 2028.
- Shares are up about 83% year to date after the agreement, and management outlined 2030 goals of $2.6 billion in revenue, $1.2 billion in EBITDA, and $900 million in free cash flow with expanded metal and magnet capacities.