Updates USA Rare Earths

Jan 26 (Reuters) - The Trump administration is ramping up efforts to secure U.S. supply chains for critical minerals and semiconductors by converting federal grants for companies into equity stakes, aimed at reducing reliance on China.

The administration has taken or discussed stakes in several companies as part of the shift to direct ownership from traditional subsidies.

Following are the companies linked to the strategic investment push:

** USA Rare Earth USAR.O

Project: Rare earth mine‑to‑magnet supply chain

Stake: The Trump administration was taking a 10% stake in the miner as part of the debt-and-equity investment package, sources familiar with the matter told Reuters

Details: USA Rare Earth will build an integrated U.S. rare earth and magnet production chain supported by $1.6 billion in proposed CHIPS Act funding.

Strategic Value: The effort looks to expand U.S. rare earth processing capacity and strengthen domestic supply chains in critical minerals.

** Korea Zinc 010130.KS

Stake acquired: Around 10%

Project: $7.4 billion smelter in Tennessee

Details: Korea Zinc will build a $7.4  billion smelter in Tennessee through a joint venture with U.S. partners.

The U.S. Department of War will hold a 40% stake in the JV, while the Commerce Department will provide $210  million in subsidies under the CHIPS Act.

Korea Zinc will issue $1.9  billion in new shares to the JV and U.S. strategic investors, giving them about 10% of the company.

The remaining $5.5  billion will come from $4.7  billion in U.S.-backed loans and other financing. Construction begins in 2026, with phased operations starting in 2029.

Strategic Value: The project strengthens U.S. supply chains and reduces reliance on China, which dominates global critical mineral supply and recently restricted exports of antimony and germanium to the United States.

** Trilogy Metals TMQ.TO

Stake acquired: 10%, investment includes warrants to purchase an additional 7.5%

Project: Upper Kobuk Mineral Projects (UKMP) in Alaska, a joint venture owned by Trilogy Metals and Australian miner South32 S32.AX

Details: The White House will invest about $35.6 million for the development of critical mineral resources at the UKMP, which is located in Alaska's Ambler mining district.

Trump also signed an executive order directing his administration to permit an access road to the Ambler mining district.

Strategic Value: Ambler mining district is a mineral-rich area with copper, zinc and lead deposits.

** Critical Metals CRML.O

Stake under discussion: About 8%

Project: Tanbreez rare earths deposit, Greenland

Strategic value: Trump administration officials have discussed taking a stake in Critical Metals, four people familiar with the discussions told Reuters.

A deal would give Washington a direct interest in the largest rare earths project in Greenland, the Arctic territory that Trump once suggested buying.

** Lithium Americas LAC.TO

Stake acquired: 5% in parent company and 5% in Thacker Pass JV with General Motors GM.N

Project: Thacker Pass lithium mine, Nevada

Strategic value: The project is seen as a linchpin in building a domestic supply chain, part of Washington's long-standing drive to boost U.S. production of lithium - a metal used to make batteries for electric vehicles and other electronics.

** MP Materials MP.N

Stake acquired: About 15%

Project: Mountain Pass rare earth mine, California

Strategic value: MP operates the only U.S. rare earths mine and is working to boost domestic processing and magnet production.

The U.S. Department of Defense (DoD) will become the largest shareholder in Las Vegas-based MP, making it Washington's most high-profile investment to date in the critical minerals sector.

** Intel Corp INTC.O

Stake acquired: 9.9%

Strategic value: The investment strengthens U.S. supply chain security and supports Intel's plans to build and expand advanced manufacturing facilities domestically.

(Reporting by Arunima Kumar, Vallari Srivastava, Sumit Saha and Pranav Mathur in Bengaluru; Editing by Sriraj Kalluvila, Anil D'Silva and Maju Samuel)

((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94 ;))