U.S. Invests $1.6 Billion in Rare Earths: Impact on Chip and EV Stocks
The U.S. government is investing $1.6 billion in USA Rare Earth, acquiring about 10% of the company. This investment aims to secure critical minerals for the semiconductor supply chain and national security. USA Rare Earth is developing a mine in Texas and a magnet plant in Oklahoma, with output expected by 2026. This move aligns with a trend of government support for U.S. mineral supply, potentially benefiting companies like Tesla, Nvidia, AMD, and Intel. The deal indicates a long-term focus on critical minerals in U.S. industrial policy.
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