Governor Greg Abbott announced on May 12, 2026, a $14,177,600 grant from the Texas Semiconductor Innovation Fund (TSIF) to USA Rare Earth, Inc. (USARE).
The investment is aimed at accelerating the production of heavy rare earth elements (HREEs) at the company’s Round Top Mountain project in Hudspeth County, a move state leaders say will strengthen domestic supply chains for the semiconductor and defense industries.
According to the press release, the Round Top Mountain facility is expected to create 260 new jobs in Far West Texas and represents more than $1.4 billion in capital investment. The project focuses on mining and processing the critical minerals required for high-performance permanent magnets, which are essential components in semiconductor manufacturing, electric vehicles, robotics, and advanced defense systems. The site contains an estimated one billion tons of material, including 15 of the 17 rare earth elements deemed vital to U.S. national security.
Governor Abbott stated that the grant is a “Texas-sized investment” intended to reduce U.S. reliance on foreign supply chains, particularly for minerals that power national security infrastructure.
According to USA Rare Earth CEO Barbara Humpton, the award facilitates the creation of a “fully integrated value chain from American soil”. While the company is also progressing toward the 2026 commissioning of a magnet manufacturing facility in Stillwater, Oklahoma, the Texas-based Round Top project serves as the primary source of the raw heavy rare earth oxides needed for that production.
The grant received support from the West Texas legislative delegation. State Senator César J. Blanco (D-El Paso) called the investment a “major step toward strengthening American energy independence,” noting that it positions Texas at the forefront of the rapidly growing critical minerals industry.
Representative Eddie Morales (D-Eagle Pass) added that West Texas is uniquely positioned to lead the nation in securing these supply chains as global demand for rare earth minerals continues to surge.
This award is the latest in a series of TSIF investments. The Texas Dispatch reported on May 7, 2026 that the state extended a $13 million grant to Texas A&M University to expand its semiconductor testing and radiation hardness capabilities.
“Texas is where hard work and innovation will secure America’s mineral independence,” Governor Abbott stated, emphasizing that the state will continue to leverage innovative partnerships to lead the nation in advanced technology for decades to come.