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U.S. expands rare earth production with grants, loans and equity stakes
A June 2026 Commerce deal with USA Rare Earth includes $277.0 million in grants and a $1.3 billion senior secured loan, plus a 16.0% government equity stake.
ING’s FXStreet-reproduced analysis says the United States is stepping up domestic rare earth production using a mix of federal tools, including grants, loans, equity stakes, purchase agreements and price floors for key products such as NdPr oxide and magnets.
The report highlights capacity announcements for refining and magnet production, but notes that high production costs are likely to slow scaling in some parts of the supply chain.
It points to a June 2026 Department of Commerce deal with USA Rare Earth that pairs $277.0 million in direct grants with a $1.3 billion senior secured loan, alongside the government taking a 16.0% equity stake to support development of a vertically integrated domestic supply chain.
While the analysis says the support is beginning to address bottlenecks through rising output and an expanded capacity pipeline, it adds that production costs remain a key hurdle.