Texas Signed Mineral Leases for Rare Earth Mining
The state secured two mineral leases in Hudspeth County to support the expansion of domestic critical mineral production.
Updated on Sept. 22, 2026 in Oil and Gas
Live Poll
Should the United States prioritize domestic mining to reduce reliance on foreign mineral sources?
The Texas General Land Office has finalized two mineral lease agreements with El Paso Minerals Corp, covering more than 1,000 acres in Hudspeth County. These leases are intended to bolster the Round Top project, a key initiative for domestic mineral development.
Why it matters
This initiative aims to establish a dedicated rare earth mining district in Texas to secure domestic supplies of critical minerals. By expanding this production, the state seeks to reduce national reliance on foreign sources for these essential materials.
The agreement generated over $500,000 in immediate revenue for the Permanent School Fund across more than 1,000 acres of land. This expansion supports the broader Round Top project, which has secured $1.6 billion in total funding.
The players
Texas General Land Office
This state agency manages state-owned lands, mineral rights, and revenues for the benefit of Texas public schools.
El Paso Minerals Corp
This corporation is the primary developer tasked with extracting minerals from the lease areas in Hudspeth County.
USA Rare Earth
This company is the developer behind the Round Top project and secured the $1.6 billion funding package.
The details
The new leases provide El Paso Minerals Corp with the largest land position in the Sierra Blanca district, surrounding the existing Round Top project site located 90 miles east of El Paso. The company is currently preparing to drill its primary target as it moves forward with the site development.
Timeline
September 22, 2026: The Texas General Land Office announced the new mineral leases.
June 2026: The Department of Commerce announced $1.6 billion in project funding.
Market Landscape
This development aligns with national efforts to reshore critical mineral production following the U.S. Department of Commerce project funding initiatives. It positions Texas as a central hub in the competitive global race to reduce dependence on foreign-sourced rare earth materials.
The infusion of $500,000 into the Permanent School Fund provides a direct, albeit indirect, financial benefit to the state education system. Residents of Hudspeth County may see future local economic activity as development operations scale at the nearby mining site.
The takeaway
Developing a domestic rare earth supply chain is a multi-billion dollar effort that requires significant land access and state-level cooperation. Increased activity in West Texas could mark a long-term shift toward regional industrial growth in the mining sector.
Further reading
Learn more about the energy sector in Texas.
Live Poll
Should the United States prioritize domestic mining to reduce reliance on foreign mineral sources?
