Gov. Greg Abbott announced a $14,177,600 Texas Semiconductor Innovation Fund grant to USA Rare Earth, Inc., to advance rare earth mineral production at the company’s Round Top Mountain project in Hudspeth County.
The project is projected to generate 260 jobs and reflects more than $1.4 billion in capital investment, according to the governor’s office.
“Texas is where hard work and innovation will secure America’s mineral independence,” Abbott said in a May 12, 2026, press release. “This Texas-sized investment by USA Rare Earth will create good-paying jobs in Far West Texas and reduce reliance on foreign supply chains for critical minerals that power our economic and national security. Working with innovative industry partners, we will accelerate Texas’ leadership in semiconductor manufacturing and advanced technologies for decades to come.”
USA Rare Earth (USARE) plans to develop the Round Top Mountain deposit as a domestic source of heavy rare earth elements and select technology metals. The site is estimated to contain one billion tons of material and includes 15 of the 17 rare earth elements, according to the governor’s office.
Oxides produced from the deposit are described as critical inputs for high-performance permanent magnets used in semiconductor manufacturing, electric vehicles, physical AI and robotics, and advanced defense systems.
“USA Rare Earth is grateful to Governor Abbott and the State of Texas for this investment in America’s critical minerals future,” said USA Rare Earth CEO Barbara Humpton. “This Texas Semiconductor Innovation Fund award reinforces what we’ve known from the start — Texas is where America’s rare earth independence begins. With our Round Top deposit in Hudspeth County and the support of visionary state leaders, we are building a fully integrated value chain from American soil, creating Texas jobs, and ensuring that the United States and its allies and partners never again depend on adversarial nations for the materials that power our national defense, advanced manufacturing, and next-generation technology. From mine to magnet and beyond, USA Rare Earth is proud to call Texas home.”
Sen. César J. Blanco (D-El Paso) said the grant supports both the regional economy and national priorities.
“West Texas is once again proving the powerful role it plays in driving the future of our state and nation,” Blanco said. “This investment in Hudspeth County is a major step toward strengthening American energy independence, expanding advanced manufacturing, and supporting national security.
“By strengthening the domestic critical minerals supply chain, we are reducing our reliance on foreign sources while positioning Texas at the forefront of a rapidly growing, high-demand industry. I want to thank Governor Abbott for recognizing the importance of investing in our region and strengthening Texas’ leadership in this vital industry.”
Rep. Eddie Morales (D-Eagle Pass) also welcomed the announcement.
“As demand for rare earth minerals surge, Texas is positioned to lead the nation in securing our supply chain and investing in our national security,” Morales said. “The economic growth and jobs created are vital for our region, and I am proud to see West Texas at the forefront of ensuring our economic and national security future, alongside USARE.”
Abbott signed the Texas CHIPS Act into law in 2023, creating the Texas Semiconductor Innovation Fund and the Texas Semiconductor Innovation Consortium. The programs are administered by the Texas CHIPS Office within the Texas Economic Development & Tourism Office in the Office of the Governor.
