Significantly Bolsters U.S. National Security and Competitiveness by Developing Essential Domestic Supply of Critical Minerals, Metals, and Magnets Currently Unavailable[...]

Significantly Bolsters U.S. National Security and Competitiveness by Developing Essential Domestic Supply of Critical Minerals, Metals, and Magnets Currently Unavailable Outside China

Secures Domestic Access to 12 of the U.S. Government's Top 30 Most Essential Critical Minerals and Rare Earth Elements

STILLWATER, Okla., January 26, 2026 - USA Rare Earth, Inc. (Nasdaq: USAR) ("USAR" or "the Company") today announced its entry into a non-binding Letter of Intent (the "LOI") with the U.S. Department of Commerce and a collaboration with the U.S. Department of Energy (DOE). 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. In conjunction with this announcement, USAR 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 LOI with the U.S. Government 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 that underpin U.S. national security, including semiconductors, other critical technologies, and advanced manufacturing. The LOI is subject to further diligence, finalization of agreements, customary closing conditions, and approvals.

This capital is expected to accelerate and de-risk USAR's growth objectives across mining, processing, metal-making and magnet manufacturing, and supports a business that by 2030 will:

"This landmark collaboration with the U.S. Government represents a transformative step in USAR's mission to secure and grow a resilient, independent domestic rare earth value chain," said Barbara Humpton, Chief Executive Officer of USA Rare Earth. "We are grateful to President Trump, Secretary Lutnick, and Secretary Wright for their support and recognition of the strategic importance of rare earth materials and permanent magnets. With this unprecedented show of public and private support for our Company, we are positioned to accelerate the build-out of important domestic capabilities that are essential to U.S. national security, global economic competitiveness, and critical technologies of the future."

"This transformational collaboration with Department of Commerce and the proposed $1.6 billion of CHIPS Act funding, along with $1.5 billion of private sector financial and strategic capital, will help secure the heavy rare earth supply chain for the U.S. and its allies and underscores USAR's strategic nature in support of national and economic security," said Michael Blitzer, Chairman of the Board of USA Rare Earth and Chairman and CEO of Inflection Point. "USAR and the Department of Commerce will mobilize a multi-year partnership at unprecedented scale and speed to build out capacity across heavy rare earth feedstock, processing, metal, and magnets, and we are proud to partner with the U.S. Government in support of the Company's next phase of growth. We look forward to successfully implementing this ambitious plan with the goal of generating substantial financial returns for our shareholders."

"USA Rare Earth's heavy critical minerals project is essential to restoring U.S. critical mineral independence," said Secretary of Commerce Howard Lutnick. "This investment ensures our supply chains are resilient and no longer reliant on foreign nations."

In addition to the collaboration with the Department of Commerce, the U.S. Department of Energy's National Energy Technology Laboratory has signed a Letter of Intent to collaborate with USAR to advance heavy REE separation technologies at the Company's Wheat Ridge lab and Round Top deposit, leveraging digital twin technology. Under the Trump administration, the DOE has prioritized innovation in process modeling, the use of digital twins, and the deployment of testbeds for material-processing R&D. Through this partnership, the DOE will contribute to the development of digital twins to advance rare earth element separation technologies, with the ultimate goal of establishing the country's first fully domestic mine-to-magnet supply chain.

"Thanks to President Trump's leadership, the Department of Energy is ending America's reliance on foreign nations for the critical materials essential to our economy and national security," said U.S. Energy Secretary Chris Wright. "The DOE is partnering with USAR to rebuild the critical minerals supply chain. By expanding domestic mining, processing, and manufacturing capabilities, we are creating good-paying American jobs and safeguarding our national security."

"Accelerating the onshoring of rare earth minerals, metals, and magnets is paramount to national and economic security," said the Executive Director of the U.S. Investment Accelerator, Michael Grimes. "With the Department of Commerce's funding for USA Rare Earth's vertically integrated mine-to-magnet operations, we will significantly increase the domestic supply of crucial components for semiconductors, defense, and numerous other industries strategic to the United States."

"The CHIPS Program's proposed $277 million funding and $1.3 billion loan will be instrumental for the construction of a domestic integrated supply chain for critical minerals and NdFeB magnets, which are essential for semiconductor chip manufacturing," said Bill Frauenhofer, Director of the CHIPS Program. "Yttrium, gallium, terbium, and the other nine critical and strategic minerals that will be mined in Texas, along with the Oklahoma magnet production, provides U.S. semiconductor companies a reliable domestic source and removes choke points in their manufacturing supply chain that enable chemical vapor deposition, high-k materials, compound semiconductors, dopants, and other foundational applications."

The U.S. Government's proposed funding will feature milestones consistent with USAR's funding needs and create a structure that aligns taxpayer returns and the objectives of institutional investors and excludes the need for government price supports or government offtake agreements. The collaboration reflects the U.S. Government's commitment to strengthening supply chains, reducing reliance on foreign sources of critical minerals, rebuilding strategic industrial capabilities, and ensuring secure access to materials essential for semiconductor manufacturing, robotics, industrial motors, electric vehicles, drones, fighter jets, nuclear submarines, satellites, and other advanced technologies.

Transaction Overview

USAR Q4 2025 Highlights

The Company also announced the following achievements and milestones, which occurred during the quarter ended December 31, 2025.

Business Highlights

Preliminary Financial Highlights

The Company expects to report that as of December 31, 2025, the Company had cash and cash equivalents in excess of $350 million. 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.

These estimates are preliminary and subject to normal end-of-year closing procedures and audit, and accordingly, are subject to change. As a consequence, actual results may differ from the preliminary results described above.

Analyst Conference Call

USAR will host a conference call today at 8:30 a.m. ET to discuss the U.S. Government partnership, PIPE transaction, and the accelerated and expanded development plans. The conference call and related presentation will be accessible through a live webcast on the Company's investor relations website at usare.com/investor-relations. A replay of the webcast will also be available on the Company's website.

Live Conference Call

Monday, January 26, 2026, at 8:30 a.m. ET

US / Canada Toll-Free: +1 (866) 652-5200

Local / International Toll: +1 (412) 317-6060

Webcast link: Live Webcast

Conference Call Replay

Available approximately three hours after the live call concludes.

Expiration: February 26, 2026

US and Canada Toll-Free: (855) 669-9658

Local / International Toll: +1 (412) 317-0088

Access code: 4954787

Transaction Advisors

Latham & Watkins LLP and White & Case LLP acted as legal advisors and Moelis & Company LLC ("Moelis") acted as exclusive financial advisor to USAR in structuring its agreements with the U.S. Government.

Cantor Fitzgerald & Co. acted as lead placement agent and Moelis also acted as co-placement agent to USAR in connection with the announced PIPE transaction. White & Case LLP acted as legal advisor to USAR in the PIPE transaction, and DLA Piper LLP (US) acted as legal counsel to the placement agents in the PIPE transaction.

About USA Rare Earth

USA Rare Earth, Inc. (Nasdaq: USAR) is building a fully integrated rare earth and permanent magnet supply chain across the United States, United Kingdom, and Europe. Through its ownership of LCM, one of the world's leading producers of rare earth metals and alloys, and its development of magnet manufacturing capacity in Stillwater, Oklahoma, USAR operates across the entire value chain from heavy rare earth processing to metal-making, alloy production, and neodymium magnet manufacturing. By combining domestic feedstock from the Round Top deposit with advanced processing technologies, recycling capabilities, and a growing European industrial footprint, USAR is establishing a secure, sustainable, Western-aligned supply of materials essential to defense, electrification, robotics, renewable energy, and advanced manufacturing industries.

PIPE Financing

The securities being sold in the PIPE have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws and accordingly may not be offered or sold in the United States absent registration with the Securities and Exchange Commission or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.