Texas Border Business
AUSTIN – Governor Greg Abbott announced that a Texas Semiconductor Innovation Fund (TSIF) grant of $14,177,600 has been extended to USA Rare Earth, Inc. (USARE) to accelerate rare earth mineral production at their Round Top Mountain project in Hudspeth County. The facility is expected to create 260 jobs and represents more than $1.4 billion in capital investment.
“Texas is where hard work and innovation will secure America’s mineral independence,” said Governor Abbott. “This Texas-sized investment by USA Rare Earth will create good-paying jobs in Far West Texas and reduce reliance on foreign supply chains for critical minerals that power our economic and national security. Working with innovative industry partners, we will accelerate Texas’ leadership in semiconductor manufacturing and advanced technologies for decades to come.”
USARE will develop its Round Top Mountain deposit as a domestic source of heavy rare earth elements (HREEs) and select technology metals. Rare earth elements are deemed vital to U.S. national security; the oxides from this deposit are critical components for high-performance permanent magnets used in semiconductor manufacturing, electric vehicles, physical AI and robotics, as well as advanced defense systems. The Round Top site contains an estimated one billion tons of material and 15 of the 17 rare earth elements.
“USA Rare Earth is grateful to Governor Abbott and the State of Texas for this investment in America’s critical minerals future,” said USA Rare Earth CEO Barbara Humpton. “This Texas Semiconductor Innovation Fund award reinforces what we’ve known from the start — Texas is where America’s rare earth independence begins. With our Round Top deposit in Hudspeth County and the support of visionary state leaders, we are building a fully integrated value chain from American soil, creating Texas jobs, and ensuring that the United States and its allies and partners never again depend on adversarial nations for the materials that power our national defense, advanced manufacturing, and next-generation technology. From mine to magnet and beyond, USA Rare Earth is proud to call Texas home.”
“West Texas is once again proving the powerful role it plays in driving the future of our state and nation,” said Senator César J. Blanco. “This investment in Hudspeth County is a major step toward strengthening American energy independence, expanding advanced manufacturing, and supporting national security. By strengthening the domestic critical minerals supply chain, we are reducing our reliance on foreign sources while positioning Texas at the forefront of a rapidly growing, high-demand industry. I want to thank Governor Abbott for recognizing the importance of investing in our region and strengthening Texas’ leadership in this vital industry.”
“As demand for rare earth minerals surge, Texas is positioned to lead the nation in securing our supply chain and investing in our national security,” said Representative Eddie Morales. “The economic growth and jobs created are vital for our region, and I am proud to see West Texas at the forefront of ensuring our economic and national security future, alongside USARE.”
View more information about USARE.
Governor Abbott signed the Texas CHIPS Act into law in 2023 to establish the Texas Semiconductor Innovation Fund (TSIF), a grant program to continue Texas’ leadership in semiconductor research, design, and manufacturing, as well as the Texas Semiconductor Innovation Consortium (TSIC). These programs, administered by the Texas CHIPS Office, a division within the Texas Economic Development & Tourism Office in the Office of the Governor, are designed to leverage Texas’ investments in the semiconductor industry, encourage semiconductor-related companies to expand in the state, further develop the expertise and capacity of Texas institutions of higher education, and maintain the state’s position as the nation’s leader in semiconductor manufacturing.
