USA Rare Earth (USAR) is trading higher in early Thursday action, up $1.13 per share, after announcing it has been selected by the U.S. Department of Energy to receive up to $19.3M in federal funding, pending final negotiations. The award comes through the DOE’s Critical Materials Innovation, Efficiency and Alternatives program and is aimed at advancing a pilot‑scale rare earth element (REE) separations project within the United States.
The project is designed to expand domestic processing capabilities for rare earth elements—materials essential for defense systems, electric motors, permanent magnets, and other high‑value technologies. USAR noted that the initiative will specifically support the development of pre‑commercial REE separations capacity, an area where the U.S. remains heavily dependent on foreign supply chains.
CEO Barbara Humpton described the DOE selection as “an important validation of our team’s cutting‑edge work to build a resilient rare earth value chain,” reinforcing the company’s strategy to establish a vertically integrated mine‑to‑magnet capability.
The total project value is estimated at $50.5M, consisting of up to $19.3M in DOE funding and $31.2M in non‑DOE contributions. Final scope, budget, and timeline will be determined during negotiations with the Department of Energy.
This development adds another federal endorsement to USAR’s role in strengthening the domestic critical materials ecosystem and highlights the growing policy focus on securing U.S. access to rare earth supply chains.
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