Commerce Department invests $1.6 billion in USA Rare Earth to cut reliance on Chinese minerals

The Trump administration took an equity stake in a critical minerals company, marking yet another government deal in the sector aimed at reducing the United States’s reliance on China. 

The deal is part of the Trump administration’s approach to secure a domestic supply of critical minerals, which are necessary for building technology-based applications such as fighter aircraft, munitions, batteries, wind turbines, smartphones, blenders, and much more. But, China controls the global supply chain, raising national security concerns and prompting the administration to seek ways to build the U.S. supply chain through unconventional means, such as taking equity stakes in private companies.

USA Rare Earth announced on Monday that it entered into a nonbinding agreement with the Commerce Department and a collaboration with the Department of Energy.