USA Rare Earth Selected for U.S. Department of Energy Funding Under Critical Materials Innovation Program

Up to $19.3 million in federal funding to support pilot-scale rare earth element separation development

STILLWATER, Okla., May 21, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) (“USAR” or the “Company”) today announced that the U.S. Department of Energy (“DOE”) has selected it to receive up to $19.3 million in funding, subject to final negotiation, under DOE’s “Critical Materials Innovation, Efficiency and Alternatives” program. The award will support the development of a pilot-scale rare earth element (“REE”) separations project advancing domestic processing capacity for materials essential to U.S. energy, defense and advanced manufacturing supply chains.

Rare earth separations represent one of the most concentrated choke points in the global critical minerals ecosystem. Building domestic capability is essential to the long-term resilience of U.S. economic and national security. The project will advance essential technology for processing REEs from domestic resources and specifically support the development of pre-commercial separations capacity in the United States. Final project scope, budget and timeline will be determined through negotiations with DOE.

“We are honored to be selected by the Department of Energy under its critical materials innovation program,” said Barbara Humpton, Chief Executive Officer of USA Rare Earth. “This selection is an important validation of our team’s cutting edge work to build a resilient rare earth value chain. We look forward to collaborating with DOE to define and execute a program that delivers maximum value for U.S. supply chain security, as we continue to build the global leader in rare earths.”

The total project value is approximately $50.5 million, including up to $19.3 million in DOE funding and $31.2 million in non-DOE funding. Final amounts will be set in the negotiated award.

Selection for award negotiations does not constitute a binding commitment of federal funding. Any award is subject to successful completion of negotiations with DOE and the execution of a definitive funding agreement.

About USA Rare Earth

USA Rare Earth, Inc. (Nasdaq: USAR) is building a fully integrated rare earth and permanent magnet value chain across the United States, the United Kingdom, France and Brazil. Through its ownership of Less Common Metals (LCM), one of the world’s leading producers of rare earth metals and alloys; its development of magnet manufacturing capacity in Stillwater, Oklahoma; the Pela Ema mine in Brazil (subject to closing the SVG transaction); and the Round Top deposit in Texas, USA Rare Earth operates across the entire value chain from mining to metal-making, alloy production and neodymium magnet manufacturing. USA Rare Earth is establishing a secure, Western-aligned supply of materials essential to the aerospace and defense, semiconductor, energy, data center, physical AI, mobility, healthcare and industrial sectors.

For more information, visit www.usare.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include those relating to the anticipated DOE award, expected funding amounts, project scope, technology pathway, the Company’s domestic supply chain plans and other statements regarding the Company’s expectations for future development, operations, strategies, transactions and financial performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “growth,” “intend,” “may,” “might,” “plan,” “potential,” “project,” “propose,” “should,” “target,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

Forward-looking statements are subject to risks and uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from our expectations, including without limitation: risks that the proposed transactions with Serra Verde Group, Carester SAS and Texas Mineral Resources Corp. may not be consummated on their anticipated timelines or at all; we may not realize the anticipated benefits of our proposed and prior acquisitions, including expected synergies, financial performance, estimated EBITDA and, in the case of Serra Verde Group, integration of operations, on the anticipated timeline or at all; the ability of our Stillwater magnet manufacturing facility to commence commercial operations on the timing and with the production capacity anticipated or at all; our limited operating history; our ability to commercially extract minerals from the Round Top deposit on our anticipated timeline or at all; risks that we may experience delays, unforeseen expenses, increased capital costs, and other complications in operating our business; our ability to raise necessary capital on acceptable terms or at all; potential dilution to existing stockholders and adverse effect on our stock price if we issue additional common stock or equity-linked securities; the volatility of our stock price; our ability to enter into definitive agreements for the proposed U.S. Government financing, which is subject to conditions precedent and final government approvals, on the anticipated terms or at all and, if executed, to satisfy the milestones and other conditions of such financing, which could impose conditions to access such financing over a period of time; the availability of rare earth oxide, metal feedstock and other materials, utilities (including power and water) and equipment in quantities and prices that allow us to develop and commercially operate our Stillwater facility and other facilities; our ability to meet individual customer specifications and manufacture a consistently high quality product; fluctuations in demand for and prices of our products, including without limitation as a result of dumping, predatory pricing and other tactics by the Company’s competitors or state actors or the overall competitive environment; our ability to achieve positive cash flow or profitability or the ability to access cash flow within our corporate structure due to restrictions contained in our financing agreements; our ability to convert current commercial discussions and/or memorandums of understanding with customers for the sale of our neo magnets and other products into definitive orders; geopolitical developments or disruptions, such as changes in the political environment, export/import or environmental policy of the People’s Republic of China, the United States or other countries in which we operate or sell products or otherwise; war, terrorism, natural disasters or public health emergencies; our ability to retain or recruit key personnel; environmental, health and safety regulations; and our ability to comply with requirements for federal, state and local government incentives and financing.

Additional risks and detailed information regarding factors that may cause actual results to differ materially has been and will be included in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s most recently filed Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q and subsequent filings. Any forward-looking statements speak only as of the date of this press release (or such other date as is specified in such statements), and the Company undertakes no obligation to update any forward-looking statements as a result of new information or future events or developments.

USAR Investor Contact:
J.B. Lowe, CFA
VP, Head of Investor Relations
IR@usare.com

USAR Media Relations Contact:
Collected Strategies
usar-cs@collectedstrategies.com

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