Is USA Rare Earth Stock a Millionaire Maker?
Over the past year, the United States has taken measures to secure rare-earth elements and reduce its dependence on China. Earlier this year, the U.S. government provided USA Rare Earth (NASDAQ: USAR) with funding to boost its domestic "mine-to-magnet" production. The government is providing funding to bolster supply chains and ensure domestic mining and processing capabilities for these important magnets.
Given the importance of rare earths for national security, could investing in USA Rare Earth make you a millionaire?
In January, USA Rare Earth secured access to $3.1 billion in much-needed capital. This includes $1.5 billion in private-sector investment and another $1.6 billion from the U.S. government, including $1.3 billion in senior secured loans; in return, the U.S. government will get a 10% equity stake in the miner's stock. This money will help the company expand its manufacturing facility in Stillwater, Oklahoma and develop its Round Top project.
Source Fool.com
