USA Rare Earth Draws $1.6B Government Commitment Amid Conflict-of-Interest Questions

USA Rare Earth Inc. (USAR) secured a $1.6 billion US government commitment in January 2026, weeks after bankers at Cantor Fitzgerald raised $1.5 billion for the company from private investors, according to Bloomberg. The parallel deals have drawn scrutiny from Democratic lawmakers alleging potential conflicts of interest involving Commerce Secretary Howard Lutnick and his sons. The Commerce Department received a 10% stake in exchange for a $277 million investment and a $1.3 billion loan, contingent on technical and financial milestones. None had been met as of June 30, 2026, and no loan funds had been issued. The company nonetheless confirmed the government received its shares and warrants. At the center of the project is Round Top Mountain in Texas, which CSIS flagged in February 2026 for an "exceptionally low ore grade" requiring 100 to 150 times more rock extraction than a high-grade Western Australian deposit. The Stillwater, Oklahoma magnet plant began production in March 2026 but won't reach commercial scale until Q4 2026. USA Rare Earth's market value has climbed to more than $6 billion from $464 million at its March 2025 listing.