(RTTNews) - USA Rare Earth (USAR) announced its entry into a non-binding Letter of Intent with the U.S. Department of Commerce and a collaboration with the U.S. Department of Energy. The Department of Commerce's CHIPS Program has provided an LOI covering a total of $1.6 billion, including $277 million in proposed federal funding and $1.3 billion in a proposed senior secured loan under the CHIPS Act. The LOI reflects the strategic importance of USAR's mine-to-magnet platform and its role in closing the rare earth element and critical mineral supply gap for essential industries, including semiconductors, other critical technologies, and advanced manufacturing. Also, the company has raised a common stock PIPE in the amount of $1.5 billion anchored by Inflection Point with participation from large mutual fund complexes. The company noted that the PIPE transaction, together with the proposed U.S. Government funding and loan, would bring the total amount of capital to $3.1 billion.
For the year ended December 31, 2025, the company anticipates both operating expenses and operating loss in the range of $56 million and $62 million, and capital expenditures in the range of $37 million and $43 million.
In pre-market trading on NasdaqGM, USA Rare Earth shares are up 20.7 percent to $29.92.
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