A new SPAC is coming to Wall Street. And it’s focused on reducing the United States of America’s dependence on foreign countries for rare earths.
What’s happening:
- USA Rare Earth has entered into a deal with Inflection Point Acquisition Corp (NASDAQ: IPXX) to go public on the Nasdaq through a SPAC transaction
Why it matters:
- Domestic sources of rare earths have become increasingly important as leading countries in the exportation of critical minerals such as China have begun to limit their total exports, which has recently happened with both gallium and antimony
- Rare earth elements are essential for the global energy transition as well as technology advancements and have become much more scarce in North America due to a lack of investment into making new rare earth discoveries
By the numbers:
- The SPAC transaction values USA Rare Earth at $870M USD
- Alongside the SPAC transaction, USA Rare Earth will raise $35M USD in new growth capital
Going deeper:
- USA Rare Earth’s flagship rare earth property is located in Texas and they are also constructing the first rare earth and critical minerals processing facility to ever exist in North America which is being built in Oklahoma
The intrigue:
- Australia’s wealthiest woman and legendary natural resource financier Gina Reinhart previously led the IPO of Brazilian Rare Earths onto the Australian Stock Exchange, which is aiming to develop one of the largest rare earth mines globally
