Trump to Invest Billions in US Rare Earths Firm

The Trump (R) Administration has moved to Invest $1.6bn (£1.2bn) in a U.S. Critical Minerals Firm, Marking Officials' latest push to Reduce China's Dominance over the Rare Earths Sector. The Non-Binding Agreement with Oklahoma-based USA Rare Earth, Announced on Monday, will bolster Mining, Processing, Metal-Making and Magnet Manufacturing, the Company said.

The Deal includes: a $1.3bn Loan from the Commerce Department, which will take a Stake in the Ffirm, and $277mn in Federal Funding. Officials are seeking to Boost U.S. Production of Minerals essential to everything from Smartphones to Defence Technologies in a Bid to Reduce Dependence on Beijing.

USA Rare Earth, which Controls Deposits of so-called "Heavy" Rare Earths that are often used for Defence Technologies, also said on Monday, it Raised a Separate $1.5bn from Private Investors. The Commerce Department's Support for USA Rare Earth follows similar Agreements with other Rare Earths Firms since Trump's return to the White House.

The Government last year, reached a $1.4bn Deal with Vulcan Elements, a Rare Eearth Magnet Start-Up, to Bolster the Domestic Rare Earths Supply Chain. It also Invested in US Rare Earths Miner MP Materials, which Owns the Country's Only Operational Rare Earths Mine. The Commerce Department did Not immediately Respond to Requests for Comment on its Investment in USA Rare Earth.

China has a Near-Monopoly on Processing Rare Earths. While the U.S. and other Countries are Investing Heavily to develop Alternative Supply Lines to China, they are some way from Achieving that Goal. Rare Earths have emerged as a Key Bargaining Chip in Trade Negotiations between Washington and Beijing in recent months. U.S. Companies rely Heavily on the Materials, Leaving them Vulnerable this year, as China took Steps to Restrict Supplies in response to U.S. Tariffs and other Tensions.

In Curbing Exports, China, which Processes around 90% of the Wworld's Rare Earths, has sought to Pressure the U.S. for better Trade Terms. The Trump Administration has also looked to other Countries as Part of its Push to Reduce Reliance on China, for Supply of the Critical Minerals.

In October, the U.S. and Australia Signed a Deal Intended to Boost Supplies of Rare Earths and Oother Critical Minerals. Trump has also Claimed to have Secured the "framework" of a Future Deal over Greenland, to Address Defence on the Island, Deal that He says Includes Access to Rare Earth Minerals.










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