USA Rare Earth seizes full control of Texas’s richest rare earth deposit, delivering a strategic blow to China’s iron grip on America’s defense and tech supply chains under President Trump’s bold America First agenda.
Story Highlights
- USAR acquires remaining 18.6% stake in Round Top for $73 million in stock, achieving 100% ownership to accelerate mining by 2028.
- Round Top holds North America’s largest heavy rare-earth deposit, vital for missiles, semiconductors, and EVs, and for countering China’s 80-90% global dominance.
- $1.6 billion federal funding from Commerce Department fuels Trump’s push for domestic supply chains independent of foreign adversaries.
- Texas schools stand to gain billions in royalties while creating jobs in Hudspeth County and bolstering national security.
- Vertically integrated “mine-to-magnet” operations in Texas, Colorado, and Oklahoma position U.S. as a non-China powerhouse.
Acquisition Secures Round Top Control
USA Rare Earth announced an all-stock deal valued at $73 million to buy out Texas Mineral Resources Corp.’s 18.6% stake in the Round Top project.
This consolidates USAR’s ownership from 81.4% to 100%, granting sole operational control of the deposit in Hudspeth County, Texas, 85 miles southeast of El Paso.
The transaction involves issuing over 3.8 million shares, with closure expected in Q3 2026 pending regulatory approvals. CEO Barbara Humpton called it a vital step toward commercial production.
This move aligns with President Trump’s directives to onshore critical minerals, shielding U.S. industries from Chinese leverage.
Federal Funding Accelerates Development
In January 2026, the U.S. Department of Commerce awarded USAR $1.6 billion to advance the Accelerated Mining Plan (AMP) at Round Top. The plan expands operations across 950 plus 9,345 acres, targeting 40,000 metric tons per day by 2030.
A definitive feasibility study is underway, advancing the first production timeline from 2030 to late 2028. Supporting facilities include a pilot separation plant in Colorado and a magnet production site in Oklahoma for defense and EV applications.
Texas General Land Office Commissioner Dawn Buckingham praised the project for generating billions in revenue for public schools while breaking China’s monopoly.
Round Top’s Strategic Mineral Riches
The Round Top deposit contains 16 of 17 rare-earth elements, with a heavy rare-earth focus, plus gallium, beryllium, lithium, and zirconium. As North America’s richest heavy REE site on state-leased land under a 19-year renewable lease, it addresses China’s control over 80-90% of global processing.
These minerals power semiconductors, electric vehicles, and precision-guided missiles, all of which are essential to U.S. military superiority.
President Trump’s 2025 emergency powers invoked the Defense Production Act to prioritize such domestic efforts, echoing precedents such as the Mountain Pass revival in California and federal stockpiling, with $12 billion in seed funding.
USAR’s vertical integration from mine to magnet creates a resilient U.S. supply chain, reducing vulnerabilities that adversaries exploit. This project counters years of globalist policies that left America dependent on hostile regimes for defense materials.
Texas rare-earth project aims to curb US reliance on China, strengthen national security https://t.co/NU5xB3nUNS
— FOX Business (@FoxBusiness) March 16, 2026
Impacts Bolster Texas and National Security
In the short term, the deal sparked swings in USAR and TMRC stock amid market reactions to the consolidation. Long-term, Round Top promises economic revival in Hudspeth County through jobs and infrastructure, plus royalties funding Texas education. U.S. defense and tech sectors gain secure access to critical minerals, scaling to massive output by 2030.
Industry experts, such as those at Prism MarketView, highlight its role in EVs, renewables, and semiconductors. No major obstacles appear, with uniform optimism across sources on timelines and benefits. Trump’s leadership ensures America’s independence, frustrating past administrations’ oversight.
Sources:
USAR stock swings after strategic Texas rare earth deal (TheStreet)
USA Rare Earth gains Texas Round Top ownership (NAM)
USA Rare Earth to acquire remaining stake in Texas Round Top deposit for $73 million (SME)
USA Rare Earth to acquire Texas Minerals, consolidating Round Top control (Mining Weekly)
