USA Rare Earth Accelerates Independence in Production
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Fool
- Significant Funding Support: USA Rare Earth has secured up to $1.6 billion in federal funding through an agreement with the U.S. Department of Commerce, including $277 million in direct grants and up to $1.3 billion in secured loan capacity, which will greatly enhance its competitiveness in the rare-earth supply chain.
- Successful Acquisition Strategy: The company acquired U.K.-based Less Common Metals for $100 million last year and Serra Verde Group for approximately $2.8 billion in April, positioning itself strongly in the global rare-earth market, especially as Serra Verde is the only large-scale producer outside Asia.
- Manufacturing Capacity Expansion: USA Rare Earth announced a $1.2 billion investment in a magnet manufacturing facility in South Carolina, which, combined with its existing operations in Oklahoma, is projected to achieve a production capacity of 600 metric tons per annum, further solidifying its market share in the electric vehicle and defense sectors.
- Long-Term Development Plans: The company aims to commence commercial production at the Round Top mine in Texas by 2028, which is rich in heavy rare-earth elements, enabling cleaner and cheaper processing, thereby providing a significant competitive advantage for USA Rare Earth.
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Analyst Views on USAR
Wall Street analysts forecast USAR stock price to fall
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 23.550
Low
15.00
Averages
22.75
High
28.00
Current: 23.550
Low
15.00
Averages
22.75
High
28.00
About USAR
USA Rare Earth, Inc. is a supplier of sintered neo magnets and other rare earth metals. The Company is engaged in developing a NdFeB magnet manufacturing plant in Stillwater, Oklahoma, and intends to establish domestic rare earth and critical minerals supply, extraction, and processing capabilities to both supply its magnet manufacturing plant and market surplus materials to third parties. It is focused on developing domestic rare earth production that offers sustainable and secure domestic supply of materials critical to key industries. Its vertically integrated approach consists of sourcing rare earth elements (REEs), in addition to other critical minerals such as gallium, to producing finished NdFeB magnets. The Company serve a variety of industries, such as defense, robotics, electric vehicles, wind power, appliances, cordless tools and computing and semiconductors. The Company owns, Less Common Metals Ltd., which is a scaled ex-China rare earth metal and alloy manufacturer.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
USA Rare Earth CFO to Present at J.P. Morgan Conference
- Conference Presentation: USA Rare Earth CFO William Robert Steele Jr. will present at the J.P. Morgan Natural Resources Conference on June 23, 2026, at 10:55 a.m. Eastern Time, which is expected to draw investor interest in the company's strategic developments.
- Investor Relations Focus: Following the conference, a replay of the presentation will be available on the company's investor relations section of its website, aiming to enhance transparency and improve engagement with investors, thereby strengthening market trust.
- Integrated Value Chain: USA Rare Earth is building a fully integrated rare earth and permanent magnet value chain across the U.S., U.K., France, and Brazil, ensuring competitiveness in critical industries through its ownership of Less Common Metals, a leading producer of rare earth metals and alloys.
- Strategic Market Positioning: The company is committed to providing a secure Western-aligned supply chain for sectors such as aerospace, defense, and semiconductors, highlighting its significant strategic position in the global rare earth market, which is expected to drive future business growth.
See More
USA Rare Earth Accelerates Independence in Production
- Significant Funding Support: USA Rare Earth has secured up to $1.6 billion in federal funding through an agreement with the U.S. Department of Commerce, including $277 million in direct grants and up to $1.3 billion in secured loan capacity, which will greatly enhance its competitiveness in the rare-earth supply chain.
- Successful Acquisition Strategy: The company acquired U.K.-based Less Common Metals for $100 million last year and Serra Verde Group for approximately $2.8 billion in April, positioning itself strongly in the global rare-earth market, especially as Serra Verde is the only large-scale producer outside Asia.
- Manufacturing Capacity Expansion: USA Rare Earth announced a $1.2 billion investment in a magnet manufacturing facility in South Carolina, which, combined with its existing operations in Oklahoma, is projected to achieve a production capacity of 600 metric tons per annum, further solidifying its market share in the electric vehicle and defense sectors.
- Long-Term Development Plans: The company aims to commence commercial production at the Round Top mine in Texas by 2028, which is rich in heavy rare-earth elements, enabling cleaner and cheaper processing, thereby providing a significant competitive advantage for USA Rare Earth.
See More
USA Rare Earth Stock Soars Amid G7 Meeting on Supply Chain
- Stock Recovery: USA Rare Earth shares surged 12.3% today, bouncing back from a 5.9% decline at Monday's close, reflecting strong market confidence in the demand for rare-earth elements.
- G7 Meeting Impact: G7 leaders reached a consensus at their meeting in France to limit any single country's share of rare-earth metal supply to below 60% by 2030, further promoting diversification in the rare-earth industry.
- Dependence on China: Research indicates that China accounted for an average of 66% of global rare-earth supply from 2021 to 2025, and the G7's goal aims to reduce reliance on China, thereby enhancing supply chain security for Western nations.
- Project Development: USA Rare Earth is developing its Round Top project and plans to launch a rare-earth magnet manufacturing facility in Oklahoma, which, despite ongoing development risks, is expected to enhance the company's competitiveness in the rare-earth market.
See More
USA Rare Earth Accelerates Production of Heavy Rare Earth Oxides
- Production Capacity Boost: USA Rare Earth is commissioning a hydrometallurgical demonstration facility in Wheat Ridge, Colorado, targeting first production of separated heavy rare earth oxides by Q3 2026, marking a significant advancement in domestic rare earth production capabilities.
- Diverse Raw Material Sourcing: The company will source raw materials from Serra Verde and Round Top, ensuring the production of commercial-grade heavy rare earth oxides including dysprosium, terbium, and yttrium, thereby enhancing its competitiveness in the global rare earth market.
- Positive Market Reaction: Following the announcement of the facility, USAR shares surged over 5% in premarket trading, reflecting investor confidence in the company's strategic execution and future growth potential, with the stock rising nearly 85% year-to-date.
- Government Support Context: The U.S. government prioritizes securing rare earth minerals and is actively promoting domestic facility development to reduce dependence on China, further solidifying USA Rare Earth’s strategic position in the global market.
See More
USA Rare Earth Commissions New Facility in Colorado
- Facility Commissioning: USA Rare Earth has officially commissioned its hydrometallurgical demonstration facility in Colorado, with the first production of separated oxides targeted for Q3, marking a significant advancement in the company's operations.
- Market Positioning: This facility will position USA Rare Earth as one of the few companies capable of producing heavy rare earth oxides, including dysprosium, terbium, and yttrium, thereby enhancing its competitiveness in a market largely dominated by China.
- Risk Management: The company has launched initial campaigns to de-risk three processing flowsheets, including ore from Round Top in Texas, third-party mixed rare earth carbonate feedstock, and rare earth magnet swarf recycling, aimed at optimizing production processes.
- Future Planning: Insights gained from these campaigns are expected to support the definitive feasibility study for Round Top, on track for completion in Q4 2026 and publication in Q1 2027, guiding future commercial engineering and facility development.
See More
USA Rare Earth Invests $1.2 Billion in New Facility to Boost Production
- Strategic Investment: USA Rare Earth has selected a site in Cherokee County, South Carolina, for a new manufacturing facility with a $1.2 billion investment, expected to produce 6,400 metric tons of NdFeB permanent magnets and 5,000 metric tons of rare-earth metals by 2028, significantly enhancing U.S. production capabilities and reducing reliance on China.
- Government Support: The U.S. government has invested $1.6 billion in USA Rare Earth through the CHIPS and Science Act, including $1.3 billion in secured loans and $277 million in direct incentives, in exchange for 16.1 million shares and approximately 17.6 million warrants, further solidifying the company's position in the critical minerals supply chain.
- Acquisition Expansion: Over the past year, USA Rare Earth has acquired Serra Verde Group for $2.8 billion and Less Common Metals for about $220 million, bridging the timing gap for its resource-rich Round Top mine in Texas, which is set to begin commercial production in 2028.
- Sales Projections: Analysts project USA Rare Earth will achieve $79 million in sales this year, increasing to $550 million next year, and reaching $1.4 billion by 2028, positioning the company as a key player in the U.S.'s ongoing
See More
USA Rare Earth CFO to Present at J.P. Morgan Conference
- Conference Presentation: USA Rare Earth CFO William Robert Steele Jr. will present at the J.P. Morgan Natural Resources Conference on June 23, 2026, at 10:55 a.m. Eastern Time, which is expected to draw investor interest in the company's strategic developments.
- Investor Relations Focus: Following the conference, a replay of the presentation will be available on the company's investor relations section of its website, aiming to enhance transparency and improve engagement with investors, thereby strengthening market trust.
- Integrated Value Chain: USA Rare Earth is building a fully integrated rare earth and permanent magnet value chain across the U.S., U.K., France, and Brazil, ensuring competitiveness in critical industries through its ownership of Less Common Metals, a leading producer of rare earth metals and alloys.
- Strategic Market Positioning: The company is committed to providing a secure Western-aligned supply chain for sectors such as aerospace, defense, and semiconductors, highlighting its significant strategic position in the global rare earth market, which is expected to drive future business growth.
See More
USA Rare Earth Accelerates Independence in Production
- Significant Funding Support: USA Rare Earth has secured up to $1.6 billion in federal funding through an agreement with the U.S. Department of Commerce, including $277 million in direct grants and up to $1.3 billion in secured loan capacity, which will greatly enhance its competitiveness in the rare-earth supply chain.
- Successful Acquisition Strategy: The company acquired U.K.-based Less Common Metals for $100 million last year and Serra Verde Group for approximately $2.8 billion in April, positioning itself strongly in the global rare-earth market, especially as Serra Verde is the only large-scale producer outside Asia.
- Manufacturing Capacity Expansion: USA Rare Earth announced a $1.2 billion investment in a magnet manufacturing facility in South Carolina, which, combined with its existing operations in Oklahoma, is projected to achieve a production capacity of 600 metric tons per annum, further solidifying its market share in the electric vehicle and defense sectors.
- Long-Term Development Plans: The company aims to commence commercial production at the Round Top mine in Texas by 2028, which is rich in heavy rare-earth elements, enabling cleaner and cheaper processing, thereby providing a significant competitive advantage for USA Rare Earth.
See More
USA Rare Earth Stock Soars Amid G7 Meeting on Supply Chain
- Stock Recovery: USA Rare Earth shares surged 12.3% today, bouncing back from a 5.9% decline at Monday's close, reflecting strong market confidence in the demand for rare-earth elements.
- G7 Meeting Impact: G7 leaders reached a consensus at their meeting in France to limit any single country's share of rare-earth metal supply to below 60% by 2030, further promoting diversification in the rare-earth industry.
- Dependence on China: Research indicates that China accounted for an average of 66% of global rare-earth supply from 2021 to 2025, and the G7's goal aims to reduce reliance on China, thereby enhancing supply chain security for Western nations.
- Project Development: USA Rare Earth is developing its Round Top project and plans to launch a rare-earth magnet manufacturing facility in Oklahoma, which, despite ongoing development risks, is expected to enhance the company's competitiveness in the rare-earth market.
See More
USA Rare Earth Accelerates Production of Heavy Rare Earth Oxides
- Production Capacity Boost: USA Rare Earth is commissioning a hydrometallurgical demonstration facility in Wheat Ridge, Colorado, targeting first production of separated heavy rare earth oxides by Q3 2026, marking a significant advancement in domestic rare earth production capabilities.
- Diverse Raw Material Sourcing: The company will source raw materials from Serra Verde and Round Top, ensuring the production of commercial-grade heavy rare earth oxides including dysprosium, terbium, and yttrium, thereby enhancing its competitiveness in the global rare earth market.
- Positive Market Reaction: Following the announcement of the facility, USAR shares surged over 5% in premarket trading, reflecting investor confidence in the company's strategic execution and future growth potential, with the stock rising nearly 85% year-to-date.
- Government Support Context: The U.S. government prioritizes securing rare earth minerals and is actively promoting domestic facility development to reduce dependence on China, further solidifying USA Rare Earth’s strategic position in the global market.
See More
USA Rare Earth Commissions New Facility in Colorado
- Facility Commissioning: USA Rare Earth has officially commissioned its hydrometallurgical demonstration facility in Colorado, with the first production of separated oxides targeted for Q3, marking a significant advancement in the company's operations.
- Market Positioning: This facility will position USA Rare Earth as one of the few companies capable of producing heavy rare earth oxides, including dysprosium, terbium, and yttrium, thereby enhancing its competitiveness in a market largely dominated by China.
- Risk Management: The company has launched initial campaigns to de-risk three processing flowsheets, including ore from Round Top in Texas, third-party mixed rare earth carbonate feedstock, and rare earth magnet swarf recycling, aimed at optimizing production processes.
- Future Planning: Insights gained from these campaigns are expected to support the definitive feasibility study for Round Top, on track for completion in Q4 2026 and publication in Q1 2027, guiding future commercial engineering and facility development.
See More
USA Rare Earth Invests $1.2 Billion in New Facility to Boost Production
- Strategic Investment: USA Rare Earth has selected a site in Cherokee County, South Carolina, for a new manufacturing facility with a $1.2 billion investment, expected to produce 6,400 metric tons of NdFeB permanent magnets and 5,000 metric tons of rare-earth metals by 2028, significantly enhancing U.S. production capabilities and reducing reliance on China.
- Government Support: The U.S. government has invested $1.6 billion in USA Rare Earth through the CHIPS and Science Act, including $1.3 billion in secured loans and $277 million in direct incentives, in exchange for 16.1 million shares and approximately 17.6 million warrants, further solidifying the company's position in the critical minerals supply chain.
- Acquisition Expansion: Over the past year, USA Rare Earth has acquired Serra Verde Group for $2.8 billion and Less Common Metals for about $220 million, bridging the timing gap for its resource-rich Round Top mine in Texas, which is set to begin commercial production in 2028.
- Sales Projections: Analysts project USA Rare Earth will achieve $79 million in sales this year, increasing to $550 million next year, and reaching $1.4 billion by 2028, positioning the company as a key player in the U.S.'s ongoing
See More
