The state is supporting USA Rare Earth in expanding the Round Top Mountain deposit.
The U.S. state of Texas is providing a grant of more than $14 million to the domestic mining company USA Rare Earth. The funding is intended to support development of the Round Top Mountain mining project, located in western Texas near the Mexican border.
The site is expected to produce primarily heavy rare earth elements, which are critical to a wide range of strategic technologies. Supply security is considered a major concern because global production remains overwhelmingly concentrated in China. In addition to rare earths, the Round Top deposit also contains technology metals such as gallium, as well as lithium, an essential battery material.
The approved funding comes from the Texas Semiconductor Innovation Fund (TSIF), which aims to strengthen the state’s position in the semiconductor sector. Rare earth elements are also highly important for semiconductor manufacturing. Materials such as yttrium and scandium are used in various production processes and in specialized chip applications. Although semiconductors currently account for a relatively small share of overall rare earth demand, their strategic importance is increasing rapidly alongside the expansion of AI infrastructure, data centers, and advanced defense electronics.
USA Rare Earth is pursuing a fully domestic supply chain for critical minerals. To expand both expertise and access to raw materials, the company has invested in and acquired additional businesses across the sector. The strategic significance Washington attaches to these plans became evident earlier this year through a direct U.S. government investment.
Photo: benkrut via Canva
