The U.S. Commerce Department has agreed to provide $1.6 billion in funding for USA Rare Earth to build out domestic mining, processing and magnet production. Ticker Tape was an early investor. We bought shares in several tranches from even earlier holders and raised more than $4.5 million to buy those shares, well before this federal funding agreement was on the radar.
The announcement mattered because the shares were becoming liquid, and the company, and investors who already held it, got the benefit of that news. If you’re looking at buying the stock today, you need to be aware of what’s already in the price. Even if you’re not a shareholder, it’s important to the U.S. economy that companies like this build an end-to-end supply chain at home, so we are not dependent on allies, let alone adversaries, for these rare earth magnets. The government funding is tied to production milestones.
Key points
- The Commerce Department agreed to $1.6 billion in funding for USA Rare Earth’s domestic mining, processing and magnet production.
- Ticker Tape was an early investor and raised more than $4.5 million to buy shares before the funding was in view.
- Investors who already held the stock benefited as the shares were becoming liquid.
- The larger point is a U.S. end-to-end rare earth magnet supply chain, with government funding tied to production milestones.
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