Governor Greg Abbott announced a $14,177,600 grant from the Texas Semiconductor Innovation Fund to USA Rare Earth, Inc. on May 12, 2026. The funding supports rare earth mineral production at the company’s Round Top Mountain project in Hudspeth County. According to the governor’s office, the facility is expected to create 260 jobs and represents more than $1.4 billion in capital investment.
What it means
The grant enables USA Rare Earth to develop the Round Top Mountain deposit as a domestic source of heavy rare earth elements and select technology metals. The site contains an estimated one billion tons of material and holds 15 of the 17 known rare earth elements. The company stated that rare earth oxides from this deposit serve as components for high-performance permanent magnets used in semiconductor manufacturing, electric vehicles, physical AI, robotics, and advanced defense systems.
Governor Abbott signed the Texas CHIPS Act into law in 2023, which established the TSIF and the Texas Semiconductor Innovation Consortium. These programs are administered by the Texas CHIPS Office, a division within the Texas Economic Development & Tourism Office in the Office of the Governor. “Texas is where hard work and innovation will secure America’s mineral independence,” Abbott said in the release. USA Rare Earth CEO Barbara Humpton said the company is grateful for the investment in America’s critical minerals future.
Key facts
- $14,177,600: TSIF grant amount awarded to USA Rare Earth, Inc.
- Hudspeth County: Location of the Round Top Mountain project receiving funding.
- 260 jobs: Number of positions expected to be created by the facility, according to the governor’s office.
- $1.4 billion: Capital investment represented by the project, described as more than this amount.
- One billion tons: Estimated material content at the Round Top site.
- 15 of 17 rare earth elements: Number of rare earth elements present at the deposit.
- 2023: Year Governor Abbott signed the Texas CHIPS Act into law, establishing the TSIF.
Source: Office of Governor Greg Abbott news release