USA Rare Earth, Inc. (Nasdaq: USAR) has taken a major step toward reshaping America’s rare earth industry. The company announced a non-binding Letter of Intent (LOI) with the U.S. Department of Commerce under the CHIPS Act, alongside a collaboration with the U.S. Department of Energy (DOE). Together with a large private investment, the move could bring $3.1 billion in total capital to the company.
This funding supports USAR’s goal to build a fully domestic, mine-to-magnet platform—from raw materials to finished magnets—critical for national security, clean energy, semiconductors, and advanced manufacturing.

Barbara Humpton, Chief Executive Officer of USA Rare Earth
“This landmark collaboration with the U.S. Government represents a transformative step in USAR’s mission to secure and grow a resilient, independent domestic rare earth value chain. We are grateful to President Trump, Secretary Lutnick, and Secretary Wright for their support and recognition of the strategic importance of rare earth materials and permanent magnets. With this unprecedented show of public and private support for our Company, we are positioned to accelerate the build-out of important domestic capabilities that are essential to U.S. national security, global economic competitiveness, and critical technologies of the future.”
CHIPS Act Support Underscores Strategic Importance
Under the LOI, the Department of Commerce’s CHIPS Program outlined support totaling $1.6 billion. This includes $277 million in proposed federal funding and a $1.3 billion senior secured loan under the CHIPS Act
In addition, USAR would issue 16.1 million common shares and about 17.6 million warrants to the Department of Commerce.
While the LOI is non-binding and subject to further diligence, approvals, and final agreements, it highlights the U.S. government’s growing focus on securing domestic supplies of rare earth elements and critical minerals.
These materials are essential for semiconductors, defense systems, aerospace applications, electric vehicles, and energy technologies—sectors where the U.S. currently relies heavily on imports.
$1.5 Billion PIPE Brings Total Capital to $3.1 Billion
Alongside government support, USA Rare Earth announced a $1.5 billion private investment in public equity (PIPE). The deal is anchored by Inflection Point, with participation from large mutual fund groups and other strategic investors.
Key details of the PIPE transaction include 69.8 million shares issued at $21.50 per share. The expected closing date is January 28, 2026, subject to standard conditions
If completed, the PIPE and the proposed CHIPS Act funding would give USAR the financial firepower to accelerate development across mining, processing, metal-making, and magnet manufacturing.
USAR’s Round Top Project Aims to Power U.S. Tech and Defense by 2030
The capital is expected to fast-track USAR’s long-term growth strategy, centered on its Round Top rare earth and critical minerals project in Texas and its downstream manufacturing assets.
By 2030, the company aims to:
- Extract 40,000 metric tons per day of rare earth and critical mineral feedstock from Round Top, with commercial production targeted for 2028
- Process 8,000 metric tons per year of third-party mixed rare earth concentrates and heavy rare earth elements (HREEs), including dysprosium, terbium, yttrium, gadolinium, hafnium, and gallium
- Reshore 10,000 tons per year of heavy rare earth metal and alloy production—capabilities that currently do not exist in the U.S.
- Expand NdFeB magnet production to 10,000 tons per year, more than double earlier plans
- Recycle 2,000 tons per year of magnet swarf, improving material efficiency
Many of these elements are critical for chips, defense systems, aerospace components, and clean energy infrastructure—and are largely unavailable from domestic sources today.

Q4 2025: Key Milestones Reached
USA Rare Earth also shared several operational updates for the fourth quarter of 2025, showing steady execution.
Major highlights included:
- Completion of the Round Top process flow sheet, validated through pilot-scale testing
- Acceleration of Round Top’s production timeline to late 2028, two years earlier than planned
- Progress toward commissioning the Stillwater, Oklahoma magnet facility in Q1 2026
- Completion of the acquisition of Less Common Metals Ltd. (LCM), a specialist in rare earth metals and alloys
LCM has already strengthened USAR’s downstream position by forming strategic supply agreements with Solvay, Permag, and Arnold Magnetic Technologies.
After the quarter ended, USAR also announced plans for a 3,750-ton-per-year metal and alloy plant in France, and selected Fluor Corporation and WSP Global as EPCM partners for Round Top.
USAR Stock Rallies Above 15%
Following this announcement, USA Rare Earth’s shares jumped more than 15% during the day, rising to $28.57 from the previous close of $24.77. At one point, the stock even reached nearly $32.
The stock had climbed as much as 27% earlier in the session, following strong gains of 9% and 17% over the previous two trading days.

- ALSO READ: MP Materials (MP Stock): The Rare Earth Magnet Powering America’s Clean Energy and Climate Goals
Why Rare Earths Matter More Than Ever
Rare earths are not actually rare in nature, but economically viable deposits are limited. As per USGS data, in 2024, the U.S. produced about 45,000 tons of rare earth oxide in mineral concentrates, valued at roughly $260 million. Most production came from the Mountain Pass mine in California.

Even so, the U.S. still imported around $170 million worth of rare earth compounds and metals in 2024. Many rare earths also enter the country embedded in finished goods, especially permanent magnets.
Measured and indicated rare earth resources are estimated at 3.6 million tons in the U.S. and over 14 million tons in Canada, underscoring the long-term potential—if domestic processing and manufacturing capacity can be built.

Thus, USA Rare Earth’s proposed $3.1 billion capital package marks a clear shift in how the U.S. approaches critical minerals. Instead of relying on fragmented supply chains, the focus is moving toward fully integrated, domestic systems.
If finalized, the CHIPS Act support and PIPE financing could position USAR as a cornerstone of America’s rare earth ecosystem—helping close supply gaps, reduce import dependence, and support industries vital to economic growth and national security.
For the U.S. rare earth sector, this announcement may prove to be a defining moment.
Last but not least, U.S. Energy Secretary Chris Wright hailed President Trump, saying:
“Thanks to President Trump’s leadership, the Department of Energy is ending America’s reliance on foreign nations for the critical materials essential to our economy and national security. The DOE is partnering with USAR to rebuild the critical minerals supply chain. By expanding domestic mining, processing, and manufacturing capabilities, we are creating good-paying American jobs and safeguarding our national security.”
The post USA Rare Earth (USAR) Stock Soars After $3.1B Funding Boost for Mine-to-Magnet Buildout appeared first on Carbon Credits.
Carbon Footprint
Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia
The voluntary carbon market is changing. Buyers are no longer focused only on large volumes of cheap credits. Instead, they want projects with strong science, long-term monitoring, and clear proof that carbon has truly been removed from the atmosphere. That shift is drawing more attention to high-integrity, nature-based projects.
One project now gaining that spotlight is the Sabah INFAPRO rainforest rehabilitation project in Malaysia. Climate Impact Partners announced that the project is now issuing verified carbon removal credits, opening access to one of the highest-quality nature-based removals currently available in the global market.
Restoring One of the World’s Richest Rainforest Ecosystems
The project is located in Sabah, Malaysia, on the island of Borneo. This region is home to tropical dipterocarp rainforest, one of the richest forest ecosystems on Earth. These forests store huge amounts of carbon and support extraordinary biodiversity. Some dipterocarp trees can grow up to 70 meters tall, creating habitat for orangutans, pygmy elephants, gibbons, sun bears, and the critically endangered Sumatran rhino.
However, the forest within the INFAPRO project area was not intact. In the 1980s, selective logging removed many of the most valuable tree species, especially large dipterocarps. That caused serious ecological damage. Once the key mother trees were gone, natural regeneration became much harder. Young seedlings also had to compete with dense vines and shrubs, which slowed the forest’s recovery.
To repair that damage, the INFAPRO project was launched in the Ulu-Segama forestry management unit in eastern Sabah.
- The project has restored more than 25,000 hectares of logged-over rainforest.
- It was developed by Face the Future in cooperation with Yayasan Sabah, while Climate Impact Partners has supported the project and helped bring its credits to market.
Why Sabah’s Carbon Removals are Attracting Attention
What makes Sabah INFAPRO different is not only the size of the restoration effort. It is also the way the project measured carbon gains.

Many forest carbon projects issue credits in annual vintages based on year-by-year growth estimates. Sabah INFAPRO followed a different path. It used a landscape-scale monitoring system and waited until the forest moved through its strongest natural growth period before issuing removal credits.
- This approach gives the credits more weight. Rather than relying mainly on short-term annual estimates, the project measured carbon sequestration over a longer period. That helps show that the forest delivered real, sustained, and measurable carbon removal.
The scientific backing is also unusually strong. Since 2007, the project has maintained nearly 400 permanent monitoring plots. These plots have allowed researchers, independent auditors, and technical specialists to observe the full growth cycle of dipterocarp forest recovery. The result is a large body of field data that supports carbon calculations and strengthens confidence in the credits.
In simple terms, buyers are not just being asked to trust a model. They are being shown years of direct forest monitoring across the project landscape.
Strong Ratings Support Market Confidence
Independent assessment has also lifted the project’s profile. BeZero awarded Sabah INFAPRO an A.pre overall rating and an AA score for permanence. That places the project among the highest-rated Improved Forest Management, or IFM, projects in the world.
The rating reflects several important strengths. First, the project has very low exposure to reversal risk. Second, it has a long and stable operating history. Third, its measured carbon gains align well with peer-reviewed ecological research and independent analysis.
These points matter in today’s market. Buyers have become more cautious after years of debate over the quality of some forest carbon credits. As a result, they now look more closely at durability, transparency, and third-party validation. Sabah INFAPRO’s rating helps answer those concerns and makes the project more attractive to companies looking for credible carbon removal.
The project is also registered with Verra’s Verified Carbon Standard under the name INFAPRO Rehabilitation of Logged-over Dipterocarp Forest in Sabah, Malaysia. That adds another level of market recognition and verification.
A Wider Model for Rainforest Recovery
Sabah INFAPRO also shows why high-quality nature-based projects are about more than carbon alone. The restoration effort supports broader ecological recovery in one of the world’s most important rainforest regions.
Climate Impact Partners said it has worked with project partners to restore degraded areas, run local training programs, carry out monthly forest patrols, and distribute seedlings to support rainforest recovery beyond the project boundary. These efforts help strengthen the wider landscape and expand the project’s environmental impact.
That broader value is becoming more important for buyers. Companies increasingly want projects that support biodiversity, ecosystem health, and local engagement, along with carbon removal. Sabah INFAPRO offers that mix, making it a stronger fit for the market’s shift toward higher-integrity credits.

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Carbon Footprint
Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story
Bitcoin’s recent drop below $70,000 reflects more than short-term market pressure. It signals a deeper shift. The world’s largest cryptocurrency is becoming increasingly tied to global energy markets.
For years, Bitcoin has moved mainly on investor sentiment, adoption trends, and regulation. Today, another force is shaping its direction: the cost of energy.
As oil prices rise and electricity markets tighten, Bitcoin is starting to behave less like a tech asset and more like an energy-dependent system. This shift is changing how investors, analysts, and policymakers understand crypto.
A Global Power Consumer: Inside Bitcoin’s Energy Use
Bitcoin depends on mining, a process that uses powerful computers to verify transactions. These machines run continuously and consume large amounts of electricity.
Data from the U.S. Energy Information Administration shows Bitcoin mining used between 67 and 240 terawatt-hours (TWh) of electricity in 2023, with a midpoint estimate of about 120 TWh.

Other estimates place consumption closer to 170 TWh per year in 2025. This accounts for roughly 0.5% of global electricity demand. Recently, as of February 2026, estimates see Bitcoin’s energy use reaching over 200 TWh per year.
That level of energy use is significant. Global electricity demand reached about 27,400 TWh in 2023. Bitcoin’s share may seem small, but it is comparable to the power use of mid-sized countries.
The network also requires steady power. Estimates suggest it draws around 10 gigawatts continuously, similar to several large power plants operating at full capacity. This constant demand makes energy costs central to Bitcoin’s economics.
When Oil Rises, Bitcoin Falls
Bitcoin mining is highly sensitive to electricity prices. Energy is the highest operating cost for miners. When power becomes more expensive, profit margins shrink.
Recent market movements show this link clearly. As oil prices rise and inflation concerns persist, energy costs have increased. At the same time, Bitcoin prices have weakened, falling below the $70,000 level.

This is not a coincidence. Studies show a direct relationship between Bitcoin prices, mining activity, and electricity use. When Bitcoin prices rise, more miners join the network, increasing energy demand. When energy costs rise, less efficient miners may shut down, reducing activity and adding selling pressure.
This creates a feedback loop between crypto and energy markets. Bitcoin is no longer driven only by demand and speculation. It is now influenced by the same forces that affect oil, gas, and power prices.
Cleaner Energy Use Is Growing, but Fossil Fuels Still Matter
Bitcoin’s environmental impact depends on its energy mix. This mix is improving, but it remains uneven.
A 2025 study from the Cambridge Centre for Alternative Finance found that 52.4% of Bitcoin mining now uses sustainable energy. This includes both renewable sources (42.6%) and nuclear power (9.8%). The share has risen significantly from about 37.6% in 2022.
Despite this progress, fossil fuels still account for a large portion of mining energy. Natural gas alone makes up about 38.2%, while coal continues to contribute a smaller share.

This reliance on fossil fuels keeps emissions high. Current estimates suggest Bitcoin produces more than 114 million tons of carbon dioxide each year. That puts it in line with emissions from some industrial sectors.
The shift toward cleaner energy is real, but it is not complete. The pace of change will play a key role in how Bitcoin fits into global climate goals.
Bitcoin’s Climate Debate Intensifies
Bitcoin’s growing energy demand has placed it at the center of ESG discussions. Its impact is often measured through three key areas:
- Total electricity use, which rivals that of entire countries.
- Carbon emissions are estimated at over 100 million tons of CO₂ annually.
- Energy intensity, with a single transaction using large amounts of power.

At the same time, the industry is evolving. Mining companies are adopting more efficient hardware and exploring new energy sources. Some operations use excess renewable power or capture waste energy, such as flare gas from oil fields.
These efforts show progress, but they do not fully address the concerns. The gap between Bitcoin’s energy use and its environmental impact remains a key issue for investors and regulators.
- MUST READ: Bitcoin Price Hits All-Time High Above $126K: ETFs, Market Drivers, and the Future of Digital Gold
Bitcoin Is Becoming Part of the Energy System
Bitcoin mining is now closely integrated with the broader energy system. Operators often choose locations based on access to cheap or excess electricity. This includes areas with strong renewable generation or underused energy resources.
This integration creates both opportunities and challenges. On one hand, mining can support energy systems by using power that might otherwise go to waste. It can also provide flexible demand that helps stabilize grids.
On the other hand, it can increase pressure on local electricity supplies and extend the use of fossil fuels if cleaner options are not available.
In the United States, Bitcoin mining could account for up to 2.3% of total electricity demand in certain scenarios. This highlights how quickly the sector is scaling and how closely it is tied to national energy systems.
Energy Markets Are Now Key to Bitcoin’s Future
Looking ahead, the connection between Bitcoin and energy is expected to grow stronger. The network’s computing power, or hash rate, continues to reach new highs, which typically leads to higher energy use.
Electricity will remain the main cost for miners. This means Bitcoin will continue to respond to changes in energy prices and supply conditions. At the same time, governments are starting to pay closer attention to crypto’s environmental impact, which could shape future regulations.

Some forecasts suggest Bitcoin’s energy use could rise sharply if adoption increases, potentially reaching up to 400 TWh in extreme scenarios. However, cleaner energy systems could reduce the carbon impact over time.
Bitcoin is no longer just a financial asset. It is also a large-scale energy consumer and a growing part of the global power system.
As a result, understanding Bitcoin now requires a broader view. Energy prices, electricity markets, and carbon trends are becoming just as important as market demand and investor sentiment.
The message is clear. As energy markets move, Bitcoin is likely to move with them.
The post Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story appeared first on Carbon Credits.
Carbon Footprint
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