Latham & Watkins Advises USA Rare Earth on Definitive Agreements With the US Government for Access to US$1.6 Billion

USA Rare Earth, Inc. (Nasdaq: USAR) (USAR), announced the execution of definitive agreements with the US Department of Commerce, unlocking access to up to US$1.6 billion in funding under the Department of Commerce’s CHIPS Program. The definitive agreements comprise up to US$277 million in federal funding and up to US$1.3 billion in senior secured loan capacity under the CHIPS Act, with disbursements tied to the achievement of project milestones. USAR will also issue to the Department of Commerce 16.1 million shares of common stock and approximately 17.6 million warrants.

Latham & Watkins LLP represented USAR in the transaction with a corporate deal team led by Los Angeles partners Steven Stokdyk and David Zaheer, with associate Dylan Towns. Advice was also provided on finance matters by San Diego partner Bryan Monson and London partner Charles Armstrong, with associates Ashley Pappenfus, Arielle Schechtman, Austin Porter, Bryce McCarthy, Nick Scott, and Ivan Alaev and assistance from Hue Pham; and on government matters by Washington, D.C. partners Kyle Jefcoat and Vanessa Le, with associate Chris Caulder.