The US government is reportedly pursuing a $1.6 billion investment in an American rare earth company, its largest such foray into the sector, as Washington looks to build up its domestic mineral supply chain.
The planned 10% stake in USA Rare Earth, the Financial Times reported, marks the latest intervention by the Trump administration into private industries it deems central to national security: The government has stakes in at least six other minerals companies.
USA Rare Earth’s CEO told Semafor last year that she welcomed the administration’s involvement.
“We have a very fragile supply chain that relies on the whole country of China,” she said. “Our job now… is to take this off of the geopolitical leverage game board.”