Investing.com — USA Rare Earth Inc () shares rose 3.1% in premarket trading Thursday after the company announced it was selected to receive up to $19.3 million in federal funding from the U.S. Department of Energy.
The funding, subject to final negotiation, comes under DOE’s “Critical Materials Innovation, Efficiency and Alternatives” program and will support development of a pilot-scale rare earth element separations project. The award aims to advance domestic processing capacity for materials essential to U.S. energy, defense and advanced manufacturing supply chains.
The total project value is approximately $50.5 million, including up to $19.3 million in DOE funding and $31.2 million in non-DOE funding. Final amounts will be determined through negotiations with DOE.
The project will advance technology for processing rare earth elements from domestic resources and support development of pre-commercial separations capacity in the United States. Final project scope, budget and timeline will be determined through negotiations with DOE.
“We are honored to be selected by the Department of Energy under its critical materials innovation program,” said Barbara Humpton, Chief Executive Officer of USA Rare Earth. “This selection is an important validation of our team’s cutting edge work to build a resilient rare earth value chain.”
The company noted that selection for award negotiations does not constitute a binding commitment of federal funding. Any award is subject to successful completion of negotiations with DOE and execution of a definitive funding agreement.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.