USA Rare Earth shares rose after it entered into a non-binding letter of intent with the US Department of Commerce for $1.6 billion in funding in exchange for 16.1 million shares issued to the department as well as warrants.

The Trump administration will invest $1.6bn (£1.2bn) in a US critical minerals firm, marking officials' latest push to reduce China's dominance over the rare earths sector.

The rare-earth metal producer said Monday that the nonbinding letter of intent from the Commerce Department’s CHIPS Program would cover a proposed $1.3 billion senior secured loan, alongside $277 mill...