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Hertha Metals has closed a $133.65 million Series A round that includes a $65 million equity investment from the U.S. government, the steel startup’s chief executive officer said. Hertha plans to produce high-purity iron for U.S.-made rare-earth magnets — magnets essential to F-35 jet fighters and missile-guidance systems.
What happened
The financing comes amid the Trump administration’s multibillion-dollar campaign to loosen China’s stranglehold on minerals vital to U.S. defense and advanced technologies, which has included ramping up support for domestic rare-earths and magnet projects. Hertha’s raise is the latest sign of that push moving from rhetoric to real dollars.
Why it matters
Washington taking direct equity stakes in private industrial companies is a notable policy shift that extends the MP Materials playbook. It signals a durable government bid behind the domestic magnet supply chain and de-risks defense sourcing — when the Pentagon sits on the cap table, lenders and offtakers take notice. For investors, the model offers a template: public money crowding in private capital rather than replacing it.
- $65 million — U.S. government equity investment in Hertha Metals
- $133.65 million — total Series A round closed by the startup
- F-35 fighters and missile-guidance systems — key end uses for rare-earth magnets
What to watch
Project milestones and the timeline for the iron production facility come first. Then watch whether more federal equity deals follow — and what conditions are attached to this funding, since offtake or sourcing strings could reshape the return profile.
Related reading: Trump Unveils $15 Billion Iowa Steel Mill — Largest in U.S. History
Should the U.S. government be taking direct equity stakes in private minerals companies, or is this the kind of market distortion investors should be wary of?
Source:
Morningstar / Dow Jones
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