USA Rare Earth CEO Barbara Hampton stated on Thursday that shareholders should not be concerned about the upcoming investment terms set by the U.S. Department of Commerce. Even if funding issues arise, the agreement will grant the government equity.

The investment plan, announced in January, involves a $1.58 billion debt and equity financing package. It represents the latest in a series of critical mineral investments by the Trump administration aimed at boosting domestic production of materials essential for electronics, weapons, and many other products.

However, the terms and negotiation process of the deal have raised concerns among some members of Congress. One point of contention is the close relationship between USA Rare Earth and Cantor Fitzgerald, a financial firm previously led by Commerce Secretary Howard Lutnick and now managed by his sons.

Last month, a senior House Democrat wrote to Lutnick, describing the deal as "highly concerning" and noting that the arrangement allowing the government to retain equity even without providing or reclaiming funds is "highly unusual."

When asked whether shareholders should worry about the deal's structure, Hampton responded, "Absolutely not." This marks her first public comments regarding Democratic concerns about the transaction.

Hampton defended the company's collaboration with Cantor, highlighting that the financial firm assisted USA Rare Earth in its March 2025 public listing. "Our best option was to work with the team that knows us best," she said.

Responding to industry criticism about the low grade of the company's Texas mineral deposit, Hampton cited Taylor Swift lyrics: "Haters gonna hate." She emphasized, "Grade alone is not the determining factor; the real factor is the recoverable heavy rare earth content."

The deposit is expected to produce yttrium, used in specialty alloys and one of the heavy rare earths subject to export controls by China. "Before working with the Department of Commerce, we weren't even aware of the critical demand for yttrium. The Commerce Department made it clear that this is a top priority for the semiconductor industry," Hampton noted.

A letter signed by Democrats, including House Natural Resources Committee ranking member Jared Huffman, is widely seen as a preview of potential investigations should Democrats regain power after the November midterm elections. The lawmakers requested disclosure of the legal basis for the equity acquisition and safeguards against conflicts of interest.

This investment is part of the Trump administration's broader strategy to "bet" on rare earths. According to reports, a lobbyist informed U.S. officials that USA Rare Earth has "developed specialized production plans targeting heavy rare earths, which are scarce outside of China," forming a core reason for the government's funding.