USA Rare Earth Inc. (NASDAQ:USAR) said it has finalized a private investment in public equity (PIPE) transaction, securing roughly $1.5 billion in gross proceeds to support its long-term expansion plans.
The fundraising was anchored by Inflection Point and drew additional backing from a group of fundamental and strategic investors. As part of the deal, the company issued about 69.8 million common shares, priced at $21.50 each.
USA Rare Earth said the capital will be directed toward accelerating the build-out of its vertically integrated mine-to-magnet platform. Planned uses include scaling mining and processing operations, expanding metal and alloy production, and advancing magnet manufacturing capacity. Proceeds will also be allocated to working capital and general corporate needs.
Cantor Fitzgerald & Co. acted as lead placement agent on the transaction, with Moelis serving as co-placement agent. Legal counsel for USA Rare Earth was provided by White & Case LLP, while DLA Piper LLP advised the placement agents.
The company noted that the securities sold in the private placement were not registered under the U.S. Securities Act of 1933 and cannot be offered or sold in the United States absent registration or a qualifying exemption.
USA Rare Earth operates across the rare earth value chain, from materials processing through to magnet manufacturing. It owns LCM, which it describes as a leading producer of rare earth metals and alloys, and is developing a magnet manufacturing facility in Stillwater, Oklahoma. Its footprint spans the United States, the United Kingdom and Europe, serving end markets such as defense, electrification, robotics, renewable energy and advanced manufacturing.