USA Rare Earth Inc.'s stock surged 5.03% in after-hours trading on Thursday, reversing earlier intraday losses.
The significant after-hours gain follows the company's announcement that it has closed a $1.5 billion private investment in public equity (PIPE) financing. This substantial capital infusion is expected to strengthen the company's balance sheet and support its strategic initiatives.
Additionally, reports indicate the U.S. Department of Commerce announced a $1.6 billion funding package for USA Rare Earth under the CHIPS Act to build out a domestic magnet supply chain. This government support represents a major endorsement of the company's role in securing critical minerals supply chains independent of China.
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