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Formalizes the Strategic Investment and Commercial Framework Between the Companies Announced in April 2026

Strengthens USA Rare Earth's Midstream Rare Earth Platform in Europe and the Integrated Industrial Ecosystem Forming in Lacq, France

Carester’s Caremag Facility to Commence Operations in Q4 2026

Provides LCM Europe and USA Rare Earth Access to Carester’s Rare Earth Oxides; Gives Carester Access to USA Rare Earth Feedstock from Serra Verde and Round Top

STILLWATER, Okla., July 23, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) (the “Company”) today announced that it has entered into definitive agreements to acquire strategic minority stakes representing approximately 13.6 percent each in Carester SAS (“Carester”), a French leader in rare earth processing and separation. InfraVia, acting through its Critical Metals Fund, seeded by the French State as an anchor investor alongside private institutional capital, is acquiring a similar stake in Carester alongside USA Rare Earth.

The agreements finalize the strategic investment and commercial framework the parties announced in April 2026. In addition to targeting healthy returns, USA Rare Earth and its subsidiary Less Common Metals (“LCM”) Europe will have the ability to purchase a portion of Carester’s oxide output from its Caremag facility. USA Rare Earth will have access to Carester’s engineering capabilities and related intellectual property for separation, processing, and recycling. In turn, Carester will have access to USA Rare Earth feedstock sources, including Serra Verde and the Round Top deposit in Texas.

"Integrating Carester’s capabilities into our global platform brings additional advanced processing optionality into our integrated value chain, further supporting our mining, metal making and magnet manufacturing businesses," said Barbara Humpton, Chief Executive Officer of USA Rare Earth. "This is also a highly strategic financial investment, as Carester’s position as one of the few facilities outside of China capable of separating heavy rare earths beginning in 2027 can provide a distinct competitive advantage. We anticipate that this scarcity, coupled with accelerating demand for secure critical materials, can drive sustainable, long-term value for our shareholders."

Founded in 2019, Carester is a French specialist in rare earth processing and separation technologies, with decades of technical expertise across the value chain from raw material sourcing through high-purity rare earth oxides. Carester is currently building its Caremag magnet recycling and heavy rare earth separation facility in Lacq, France, scheduled for commissioning in late 2026 with an anticipated annual production when fully ramped of 800 tonnes per annum (tpa) of neodymium-praseodymium (NdPr) oxide, 500 tpa of dysprosium (Dy) oxide and 100 tpa of terbium (Tb) oxide. The facility’s Dy and Tb oxide production is expected to represent approximately 15% of current world production of these magnetic heavy rare earth oxides.

Proceeds will primarily fund Carester’s next phase of growth, including expansion of its rare earth processing and separation platform (Caremag), research and development, and working capital. As a condition to completion of the strategic investment, a portion of the joint investment will fund the acquisition of minority shareholders’ interest, resulting in their full exit. Funding is expected in the third quarter of 2026, subject to remaining customary conditions.

The investment is part of a broader partnership between USA Rare Earth, LCM Europe, and Carester to build an integrated rare earth industrial platform in Lacq, France, spanning processing, separation, metal and alloy production, and potentially magnet manufacturing. In parallel, USA Rare Earth, through LCM Europe, is developing a 3,750 mtpa metal and alloy production facility at the same location. Together, these projects are intended to form one of Europe’s most complete rare earth industrial ecosystems and to advance a secure, Western-aligned value chain across the United States, the United Kingdom, and Europe.

The Lacq platform builds on the French government’s previously announced support for the LCM Europe metallization and alloy project, including direct credits under the C3IV program of up to 45 percent of eligible equipment and real estate, up to €130 million, and Bpifrance Assurance Export’s readiness to consider a state guarantee (Garantie des Projets Stratégiques) covering 50 percent of commercial debt financing for project capital expenditures.

Transaction Advisors

Moelis & Company LLC acted as financial advisor and Latham & Watkins LLP acted as legal advisor to USA Rare Earth.

About USA Rare Earth

USA Rare Earth, Inc. (Nasdaq: USAR) is building a fully integrated rare earth and permanent magnet value chain across the United States, the United Kingdom, and Europe. Through its ownership of Less Common Metals Ltd. (LCM) and development of magnet manufacturing capacity in Stillwater, Oklahoma, USA Rare Earth operates across the entire value chain, from heavy rare earth processing to metal-making, alloy production, and neodymium magnet manufacturing. By combining domestic feedstock from the Round Top deposit with advanced processing technologies, recycling capabilities, and an expanding European industrial footprint, USA Rare Earth is establishing a secure, Western-aligned supply of materials essential to defense, electrification, robotics, energy, and advanced manufacturing.

About Carester

Founded in 2019 by Frédéric Carencotte and a team of international experts, Carester is a French company specializing in the refining of rare earth elements, critical materials for advanced technologies. The company is a leader in the separation and production of highly valuable heavy rare earth oxides including praseodymium (Pr), neodymium (Nd), terbium (Tb), and dysprosium (Dy), all critical components of permanent magnets. Carester processes both mined and recycled material, and its proprietary software intellectual property enables customers to optimize oxide formulations for specific use cases.

About InfraVia Capital Partners

Founded in 2008, InfraVia is a leading independent private capital firm specialized in real assets (infrastructure, critical metals, real estate) and technology investments. InfraVia is a conviction-driven investor focusing on resilient assets and long-term value creation through active, hands-on asset management. Headquartered in Paris, InfraVia is 100 percent partner-owned. InfraVia manages more than EUR 20 billion of capital and has invested in more than 60 companies across Europe.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements regarding the Company’s investment in Carester and the timing and completion of that investment, the development of Carester’s Caremag facility and LCM Europe’s planned metal and alloy production facility in Lacq, France, the Company’s role in establishing a midstream and downstream rare earth and magnet value chain in Europe, and USAR’s expectations for future development, operations, strategies, transactions and financial performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as “anticipate,” “can,” “continue,” “could,” “growth,” “may,” “might,” “plan,” “potential,” “project,” “propose,” “should,” “target,” “vision,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

Forward-looking statements are subject to risks and uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from our expectations, including without limitation: the investment in Carester is subject to remaining customary conditions and may not be completed on the terms contemplated or at all; Carester’s Caremag facility in Lacq, France is under construction and has not commenced commercial operation, and its commissioning may be delayed; the proposed transactions with Serra Verde Group and Texas Mineral Resources Corp. may not be consummated on their anticipated timelines or at all; we may not realize the anticipated benefits of our proposed and prior acquisitions, including expected synergies, financial performance, estimated earnings before interest, taxes, depreciation and amortization and, in the case of Serra Verde, integration of operations, on the anticipated timeline or at all; the ability of our magnet manufacturing facility in Stillwater, Oklahoma (the “Stillwater facility”) or other future magnet manufacturing facilities to commence commercial operations on the timing and with the production capacity anticipated or at all; our limited operating history; our ability to commercially extract minerals from the Round Top deposit in Texas on our anticipated timeline or at all; risks that we may experience delays, unforeseen expenses, increased capital costs, and other complications in operating our business; our ability to raise necessary capital on acceptable terms or at all; potential dilution to existing stockholders and adverse effect on our stock price if we issue additional common stock or equity-linked securities; the volatility of our stock price; our ability to satisfy project milestones and other conditions to disbursement under our financing arrangement with the DOC on the anticipated timeline or at all; our dependence on continued governmental support for the DOC financing transactions, which remains subject to changes in laws, regulations, administrations and appropriations; extensive affirmative and negative covenants, domestic content and national security guardrail provisions and ongoing reporting obligations in the DOC financing agreements that restrict our operational and financial flexibility; the risk that defaults under the DOC funding agreements could trigger cross-defaults across our financing arrangements; the impact of the DOC’s equity interest in us on our ability to pursue strategic transactions and on our relationships with customers, suppliers, partners and other counterparties; the availability of rare earth oxide, metal feedstock and other materials, utilities (including power and water) and equipment in quantities and prices that allow us to develop and commercially operate our Stillwater facility and other facilities; our ability to meet individual customer specifications and manufacture a consistently high quality product; fluctuations in demand for and prices of our products, including without limitation as a result of dumping, predatory pricing and other tactics by our competitors or state actors or the overall competitive environment; our ability to achieve positive cash flow or profitability or the ability to access cash flow within our corporate structure due to restrictions contained in our financing agreements; our ability to convert current commercial discussions and/or memorandums of understanding with customers for the sale of our neo magnets and other products into definitive orders; geopolitical developments or disruptions, such as changes in the political environment, export/import or environmental policy of the People’s Republic of China, the United States or other countries in which we operate or sell products or otherwise; limitations imposed on our business by the Chinese government; war, terrorism, natural disasters or public health emergencies; our ability to retain or recruit key personnel; environmental, health and safety regulations; and our ability to comply with requirements for federal, state and local government incentives and financing.

Additional risks and detailed information regarding factors that may cause actual results to differ materially has been and will be included in our filings with the SEC. Any forward-looking statements speak only as of the date of this report (or such other date as is specified in such statements), and USAR undertakes no obligation to update any forward-looking statements as a result of new information or future events or developments, except to the extent required by law.

Investor Contact

JB Lowe

Vice President, Investor Relations

USA Rare Earth, Inc.

[email protected]

Media Contact

Collected Strategies

[email protected]

Barbara Humpton to retire and Thras Moraitis to become CEO, both effective October 1, 2026

Michael Blitzer elected Executive Chairman, effective immediately

STILLWATER, Okla., July 20, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) (“USAR”, “USA Rare Earth”, or the “Company”), announced today that Barbara Humpton will retire as Chief Executive Officer and Board Director on October 1, 2026. USAR’s Board of Directors has named Thras Moraitis, current CEO of the Serra Verde Group (“Serra Verde”) and a highly experienced operator in the rare earths industry, as Ms. Humpton’s successor. Mr. Moraitis will assume the CEO role on October 1, 2026, following the anticipated completion of USAR’s combination with Serra Verde by the end of August. During the interim period, Mr. Moraitis will continue to oversee the combined company’s operations as President.

Michael Blitzer, current Chairman of USAR's Board and significant shareholder in the Company, has been elected Executive Chairman, effective immediately. Since its public listing, he has played a central role in setting USAR’s strategic direction, anchoring its vision to build a global mine-to-magnet value chain and identifying organic and inorganic growth opportunities. He also helped lead USAR’s efforts to obtain U.S. government financing, including by personally agreeing to restrictions on the transfer of his USAR common stock until certain strategic funding release milestones under the government financing are satisfied.

Ms. Humpton has been instrumental in steering USAR’s mine-to-magnet strategy, overseeing company milestones that have fundamentally transformed the Western critical minerals landscape. Under her leadership, USAR secured landmark public-private partnerships and established a global footprint spanning critical processing, metals, and magnet capabilities. She has also helped establish a culture that attracts the best and brightest minds across the sector.

Mr. Moraitis has served as Chief Executive Officer of Serra Verde since January 2023 and has an unparalleled track record of operational execution, strategic development and transaction leadership in the rare earths sector. Over his tenure, Serra Verde transformed into the only large-scale producer of the four critical magnetic rare earths outside of Asia and a pioneer of the Brazilian rare earths sector. In April 2026, Serra Verde entered into a definitive agreement to combine with USAR, creating a platform to support the first fully integrated, Western mine-to-magnet supply chain. Prior to Serra Verde, Mr. Moraitis served on the Executive Committee of Xstrata, led by CEO Sir Mick Davis, where he and the team grew Xstrata into a US$65B company, ultimately selling it to Glencore in 2013.

”On behalf of the Board of Directors, I want to thank Barbara for her leadership and contributions to USA Rare Earth – including securing landmark public-private agreements, advancing our global mine-to-magnet strategy and building an exceptional portfolio of industry leading assets,” said Michael Blitzer, Executive Chairman of USA Rare Earth’s Board of Directors. “With the Serra Verde combination nearing completion and our overall focus shifting to execution, Barbara and the Board agree this is the right time for a leadership transition. Thras is among a rare group of leaders in this industry, with a proven record of carrying companies through integration and large-scale project execution, honed over his many years helping build Xstrata. He knows what it takes to build an industry champion, and his relentless focus on operational excellence will be invaluable as we ramp to full production and scale. We are confident Thras is the right leader to guide USAR through this pivotal next chapter and deliver lasting value for all our stakeholders."

“When I joined USAR, I said this work was about being part of a mission that matters: strengthening national security, advancing American industrial competitiveness and building the critical supply chains required for the future,” said Ms. Humpton. “With the close of the Serra Verde transaction approaching and focus shifting to execution, the Board and I agree this is the right time to pass the torch to Thras. I could not be more grateful to the USAR team for what we have built, and the Board and our partners for their collaboration and commitment to those efforts. I look forward to supporting Thras and the team, and watching them execute on the transformative work that lies ahead.”

Mr. Moraitis concluded, “I am honored and excited to take on this role and grateful to Barbara for the strong foundation she has built. Over the past year, under Barbara’s leadership, the company has been transformed into a leading rare earth platform with enormous potential for growth. Through the merger integration preparation, I have become deeply familiar with USAR's operations across all steps in the value chain, its mission-critical ambitions and the importance of what it is building. Mike, the Board and I are all closely aligned in our vision for USAR: to create a platform comprising all components of the rare earth value chain, with the scale and capabilities to lead this industry globally. The rare earth industry and our customers are facing the unprecedented challenge of building secure, integrated supply chains to power the vital technologies propelling our society forward. Together, with our team and partners around the world, we will rise to this challenge.”

Additional Details About Thras Moraitis

Prior to joining Serra Verde in 2023, Mr. Moraitis served as Chief Development Officer and a member of the Executive Board of EuroChem Group AG. Mr. Moraitis was also a co-founder of X2 Resources, a US$5.6B mining investment fund. He previously served as Group Head of Strategy and Corporate Affairs and as a member of the Executive Committee of Xstrata Plc, where he was responsible for strategic development, post-acquisition integration, leadership development, external affairs and investor relations as well as Xstrata’s technology business. He has been involved in approximately 40 transactions over the course of his career and currently serves as an advisor to Vision Blue Resources. Mr. Moraitis holds an honors BSc in Electrical Engineering, a postgraduate qualification in Computer Science and an MBA.

About Michael Blitzer

Michael Blitzer is a Founder and Managing Partner of Inflection Point, the leading financial sponsor of companies at the intersection of national security, technology, and critical infrastructure. Across eight announced or closed public listings, he has led Inflection Point’s portfolio of strategically important assets, including more than US$5B of capital raised to catalyze growth across the portfolio. He has led billions of dollars in strategic M&A to scale portfolio companies into public leaders in their respective industries. As the financial sponsor and Chairman of USA Rare Earth since its 2025 public listing, Mr. Blitzer has overseen a nearly tenfold increase in market capitalization through M&A and the landmark US$1.6B public-private partnership with the United States Government.

About USA Rare Earth, Inc.

USA Rare Earth, Inc. (Nasdaq: USAR) is building a fully integrated rare earth and permanent magnet value chain across the United States, the United Kingdom, as well as plans for expansion in France and Brazil. Through its ownership of Less Common Metals (LCM), one of the world’s leading producers of rare earth metals and alloys, its magnet manufacturing capacity in Stillwater, Oklahoma, the planned acquisition of the Pela Ema mine in Brazil (subject to closing the Serra Verde Group transaction) and the Round Top deposit in Texas, USA Rare Earth operates across the entire value chain from mining to metal-making, alloy production and neodymium magnet manufacturing. USA Rare Earth is establishing a secure, Western supply of materials essential to the aerospace and defense, semiconductor, energy, data center, physical AI, mobility, healthcare and other key industrial sectors. For more information, visit www.usare.com.

Forward Looking Statements

Cautionary Note Regarding Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements regarding USAR’s expectations for future development, operations, strategies, transactions and financial performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as “anticipate,” “can,” “continue,” “could,” “growth,” “may,” “might,” “plan,” “potential,” “project,” “propose,” “should,” “target,” “vision,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

Forward-looking statements are subject to risks and uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from our expectations, including without limitation: risks that the proposed transactions with Serra Verde Group, Carester SAS and Texas Mineral Resources Corp. may not be consummated on their anticipated timelines or at all; we may not realize the anticipated benefits of our proposed and prior acquisitions, including expected synergies, financial performance, estimated earnings before interest, taxes, depreciation and amortization and, in the case of Serra Verde, integration of operations, on the anticipated timeline or at all; the ability of our magnet manufacturing facility in Stillwater, Oklahoma (the “Stillwater facility”) or other future magnet manufacturing facilities to commence commercial operations on the timing and with the production capacity anticipated or at all; our limited operating history; our ability to commercially extract minerals from the Round Top deposit in Texas on our anticipated timeline or at all; risks that we may experience delays, unforeseen expenses, increased capital costs, and other complications in operating our business; our ability to raise necessary capital on acceptable terms or at all; potential dilution to existing stockholders and adverse effect on our stock price if we issue additional common stock or equity-linked securities; the volatility of our stock price; our ability to satisfy project milestones and other conditions to disbursement under our financing arrangement with the DOC on the anticipated timeline or at all; our dependence on continued governmental support for the DOC financing transactions, which remains subject to changes in laws, regulations, administrations and appropriations; extensive affirmative and negative covenants, domestic content and national security guardrail provisions and ongoing reporting obligations in the DOC financing agreements that restrict our operational and financial flexibility; the risk that defaults under the DOC funding agreements could trigger cross-defaults across our financing arrangements; the impact of the DOC’s equity interest in us on our ability to pursue strategic transactions and on our relationships with customers, suppliers, partners and other counterparties; the availability of rare earth oxide, metal feedstock and other materials, utilities (including power and water) and equipment in quantities and prices that allow us to develop and commercially operate our Stillwater facility and other facilities; our ability to meet individual customer specifications and manufacture a consistently high quality product; fluctuations in demand for and prices of our products, including without limitation as a result of dumping, predatory pricing and other tactics by our competitors or state actors or the overall competitive environment; our ability to achieve positive cash flow or profitability or the ability to access cash flow within our corporate structure due to restrictions contained in our financing agreements; our ability to convert current commercial discussions and/or memorandums of understanding with customers for the sale of our neo magnets and other products into definitive orders; geopolitical developments or disruptions, such as changes in the political environment, export/import or environmental policy of the People’s Republic of China, the United States or other countries in which we operate or sell products or otherwise; limitations imposed on our business by the Chinese government; war, terrorism, natural disasters or public health emergencies; our ability to retain or recruit key personnel; environmental, health and safety regulations; and our ability to comply with requirements for federal, state and local government incentives and financing.
 Additional risks and detailed information regarding factors that may cause actual results to differ materially has been and will be included in our filings with the SEC. Any forward-looking statements speak only as of the date of this report (or such other date as is specified in such statements), and USAR undertakes no obligation to update any forward-looking statements as a result of new information or future events or developments, except to the extent required by law.

Additional Information and Where to Find It
In connection with our business combination with Serra Verde (the “Serra Verde Merger”), USAR filed the Preliminary Proxy Statement and, following SEC review, intends to file a definitive proxy statement (together with any amendments or supplements thereto, the “Proxy Statement”), to be distributed to USAR’s stockholders in connection with USAR’s solicitation of proxies for the vote by USAR’s stockholders with respect to the issuance of USAR common stock as merger consideration and other matters described in the Proxy Statement. SVRE’s shareholders approved the merger by written consent which was delivered concurrently with the signing of the merger agreement and will not receive a proxy statement or prospectus. USAR also plans to file with or furnish to the SEC other relevant documents regarding the Serra Verde Merger. After SEC review of the preliminary proxy statement is completed, the definitive Proxy Statement will be mailed to stockholders of USAR. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT AND ALL OTHER RELEVANT DOCUMENTS THAT ARE OR WILL BE FILED WITH OR FURNISHED TO THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER AND RELATED MATTERS.

Investors and security holders will be able to obtain free copies of the Proxy Statement and other documents containing important information about USAR and the Serra Verde Merger, once such documents are filed with or furnished to the SEC through the website maintained by the SEC at www.sec.gov. Copies of the documents filed with or furnished to the SEC by USAR will be available free of charge on USAR’s website at investors.usare.com or by contacting USAR’s Investor Relations department by email at [email protected]. The information included on, or accessible through, USAR’s website is not incorporated by reference into this communication.

Participants in the Solicitation

USAR and certain of its directors and executive officers and other members of its management and employees may be deemed to be participants in the solicitation of proxies in respect of the Serra Verde Merger.

Information about the directors and executive officers of USAR, including a description of their direct or indirect interests, by security holdings or otherwise, is contained in USAR’s Preliminary Proxy Statement. Any changes in the holdings of USAR’s securities by USAR’s directors or executive officers from the amounts described in the Preliminary Proxy Statement will be reflected in Statements of Changes in Beneficial Ownership on Form 4 (“Form 4”) or Annual Statements of Changes in Beneficial Ownership of Securities on Form 5 (“Form 5”) subsequently filed with the SEC and available at the SEC’s website at www.sec.gov. Additional information regarding the interests of such participants will be contained in the Proxy Statement when available.

No Offer or Solicitation

This communication is for informational purposes only and is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval on the Serra Verde Merger or otherwise, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or pursuant to an applicable exemption therefrom.

Investor Contact
JB Lowe
Vice President, Investor Relations
USA Rare Earth, Inc.
[email protected]

Media Contact
Collected Strategies
[email protected]

July 14, 2026 07:00 ET  | Source: USA Rare Earth, Inc.

Positions USA Rare Earth as one of few companies outside of Asia with the capability to separate heavy rare earths

Represents important step toward an integrated value chain that secures global supply for advanced manufacturing and critical industries

Broadens Company’s feedstock options to include recycled material, complementing planned oxide production from Round Top and Serra Verde concentrates

Samples to be sent to LCM for qualification; produced oxides to serve as feedstock to rare earth metal production, which supplies the Company’s magnet manufacturing facilities in the United States

WHEAT RIDGE, Colo., July 14, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) ("USAR", "USA Rare Earth", or the "Company"), a rare earth, critical minerals and advanced materials company, today announced that its hydrometallurgical facility in Wheat Ridge, Colorado, has produced commercial-grade dysprosium (Dy) oxide and neodymium-praseodymium (NdPr) oxide samples from recycled rare earth magnet scrap, known in the industry as "swarf."

USA Rare Earth’s successful separation of commercial-grade Dy oxide and NdPr oxide at Wheat Ridge is a pivotal milestone, establishing the Company as one of the few Western producers capable of executing this technically demanding process outside Asia. By bridging world-class upstream resources with advanced separation and processing, metallization, and magnet manufacturing, the Company’s mission is to build the leading global rare earth and critical mineral value chain where each link reinforces the next. This achievement marks a critical step toward delivering a global, integrated solution to de-risk supply chains for defense, semiconductors, and physical AI infrastructure.

The Dy and NdPr oxides were produced using swarf, the fine scrap generated when neodymium-iron-boron (NdFeB) magnets are machined and finished, which in this case were sourced from the Company’s Stillwater, OK magnet manufacturing facility. Turning that scrap back into high-purity light and heavy rare earth oxide broadens the Company’s feedstock options and strengthens the circularity of its value chain, with swarf projected to support up to 30% of future magnetic rare earth oxide feedstock needs. This validation of the magnet swarf recycling flowsheet also lays the foundation to potentially incorporate end-of-life magnets as an additional commercial feedstock option.

The oxides produced at Wheat Ridge are expected to be sent to Less Common Metals (“LCM”), USA Rare Earth’s subsidiary in the United Kingdom, for qualification and for conversion into rare earth metals and strip cast. The output from LCM, which is one of the few commercial scale metal, alloy and strip cast producers outside of Asia, is expected to serve as feedstock for the Company’s magnet manufacturing facilities in the United States.

Dysprosium is one of the most technically challenging rare earth elements to separate at commercial purity, and today virtually all Dy oxide is produced in China. While NdPr provides the magnetic foundation of NdFeB permanent magnets, dysprosium is added in smaller quantities to allow magnets to retain performance and coercivity at high operating temperatures, a requirement of the aerospace, defense, electric vehicle, robotics and industrial motor applications that NdFeB magnets enable. Producers with the proven ability to separate heavy rare earths at commercial specification outside Asia remain scarce, and Dy availability is widely recognized as a primary constraint on the Western permanent magnet industry.

Today’s production milestone places USA Rare Earth in that small group and establishes swarf from magnet manufacturing as a feedstock stream back into the Company’s value chain, closing the loop between the Company’s downstream magnet manufacturing and its upstream separation. Additional campaigns underway at Wheat Ridge are expected to process material from the Company’s Round Top project and from Serra Verde’s Pela Ema mine. These campaigns are expected to produce additional varieties of rare earth and critical mineral oxides in the coming weeks, further advancing USA Rare Earth toward proven capability across every stage of the rare earth value chain: mining, separation and processing, metal and alloy making, and permanent magnet manufacturing.

About the Wheat Ridge Facility

The Wheat Ridge demonstration facility runs 24 hours a day and is fully instrumented for real-time process monitoring across every unit operation. The facility is built to digitally and physically simulate the Company’s future commercial-scale operation, and the data it generates flows directly into the engineering design of a planned consolidated separation facility, which will process both magnet swarf and mixed rare earth carbonate (MREC). This allows the team to validate its proprietary flowsheets and refine the commercial design using live operating data and physical testing rather than theory alone.

About USA Rare Earth, Inc.

USA Rare Earth, Inc. (Nasdaq: USAR) is building a fully integrated rare earth and permanent magnet value chain across the United States and the United Kingdom, with plans for expansion in France and Brazil. Through its ownership of Less Common Metals (LCM), one of the world’s leading producers of rare earth metals and alloys, its magnet manufacturing capacity in Stillwater, Oklahoma, the planned acquisition of the Pela Ema mine in Brazil (subject to closing the Serra Verde Group transaction) and the Round Top deposit in Texas, USA Rare Earth operates across the entire value chain from mining to metal-making, alloy production and neodymium magnet manufacturing. USA Rare Earth is establishing a secure, Western supply of materials essential to the aerospace and defense, semiconductor, energy, data center, physical AI, mobility, healthcare and other key industrial sectors. For more information, visit www.usare.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include those relating to the objectives, scope and anticipated benefits of the Wheat Ridge demonstration program; the Company’s ability to validate and optimize its processing and separation flowsheets and to produce separated oxides at commercial quality; the Company’s plans for a consolidated commercial separation facility for magnet swarf and mixed rare earth carbonate; and the Company’s global value chain strategy. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as “anticipate,” “believe,” “can,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “project,” “should,” “target,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

Forward-looking statements are subject to risks and uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from the Company’s expectations, including without limitation: the Company’s ability to execute its business plan, including development of the Round Top deposit and its processing and manufacturing facilities; the timing and advancement of expected business milestones; the significant long-term and inherently risky investments the Company is making in mining and manufacturing facilities; the Company’s ability to obtain additional or replacement financing as needed; risks that the proposed transactions with Serra Verde Group, Carester SAS and Texas Mineral Resources Corp. may not be consummated on their anticipated timelines or at all; the Company may not realize the anticipated benefits of its proposed and prior acquisitions, including expected synergies, financial performance, estimated EBITDA and, in the case of Serra Verde Group, integration of operations, on the anticipated timeline or at all; the ability of the Company’s Stillwater facility or other future magnet manufacturing facilities to commence commercial operations on the timing and with the production capacity anticipated or at all; the Company’s limited operating history; risks that the Company may experience delays, unforeseen expenses, increased capital costs, and other complications in operating its business; potential dilution to existing stockholders and adverse effect on the Company’s stock price if the Company issues additional common stock or equity-linked securities; the volatility of the Company’s stock price; the Company’s ability to satisfy project milestones and other conditions to disbursement under the Company’s financing arrangement with the Department of Commerce (“DOC”) on the anticipated timeline or at all; the Company’s dependence on continued governmental support for the DOC financing transactions, which remains subject to changes in laws, regulations, administrations and appropriations; extensive affirmative and negative covenants, domestic content and national security guardrail provisions and ongoing reporting obligations in the DOC financing agreements that restrict the Company’s operational and financial flexibility; the risk that defaults under the DOC funding agreements could trigger cross-defaults across the Company’s financing arrangements; the impact of the DOC’s equity interest in the Company on the Company’s ability to pursue strategic transactions and on the Company’s relationships with customers, suppliers, partners and other counterparties; the availability of rare earth oxide, metal feedstock and other materials, utilities (including power and water) and equipment in quantities and prices that allow the Company to develop and commercially operate the Company’s Stillwater facility and other facilities; the Company’s ability to meet individual customer specifications and manufacture a consistently high quality product; fluctuations in demand for and prices of the Company’s products, including without limitation as a result of dumping, predatory pricing and other tactics by the Company’s competitors or state actors or the overall competitive environment; the Company’s ability to achieve positive cash flow or profitability or the ability to access cash flow within the Company’s corporate structure due to restrictions contained in the Company’s financing agreements; the Company’s ability to convert current commercial discussions and/or memorandums of understanding with customers for the sale of the Company’s neo magnets and other products into definitive orders; geopolitical developments or disruptions, such as changes in the political environment, export/import or environmental policy of the People’s Republic of China, the United States or other countries in which the Company operates or sells products or otherwise; war, terrorism, natural disasters or public health emergencies; the Company’s ability to retain or recruit key personnel; environmental, health and safety regulations; and the Company’s ability to comply with requirements for federal, state and local government incentives and financing.

Additional risks and detailed information regarding factors that may cause actual results to differ materially has been and will be included in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s most recently filed Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q and subsequent filings. Any forward-looking statements speak only as of the date of this press release (or such other date as is specified in such statements), and the Company undertakes no obligation to update any forward-looking statements as a result of new information or future developments except as required by law.

Investor Contact
JB Lowe
Vice President, Investor Relations
USA Rare Earth, Inc.
[email protected]

Media Contact
Collected Strategies
[email protected]

Critical minerals stocks are ripping higher this morning on the back of a powerful macro catalyst: unprecedented direct US military-industrial integration.

On July 7th, the US Army said it has selected REalloys (ALOY) to build and operate the first-ever commercial critical mineral processing facility directly on a US military installation.

This notable escalation of the Pentagon’s domestic supply-chain mandate is triggering a rising tide effect for Western-aligned, non-Chinese names like USA Rare Earth USAR, Critical Metals Corp (CRML), and United States Antimony Corp (UAMY).

Here’s a deeper dive into why each of these three critical minerals stocks are responding positively to the US Army announcement today.

As a heavyweight in domestic REE development with its 100% economic consolidation of Round Top project in Texas, USAR stock is the natural institutional beneficiary of the DoD news.

The Pentagon’s announcement explicitly noted that REalloys will begin qualification of defense-grade heavy rare earths (including dysprosium and terbium) by the end of 2026.

This timeline is intended to let defense contractors validate North American-processed materials ahead of the strict January 1, 2027, defense procurement deadline.

Because USAR is already tracking toward its own CHIPS Program funding ($1.6 billion under Department of Commerce evaluation), today’s news reinforces that the government sees 2026 as a critical execution window to sustainably divorce the defense base from foreign supply.

US Rare Earth shares are Buy-rated among Wall Street firms.

CRML shares are getting a massive lift due to its tight corporate ties with REalloys.

Back in May, Critical Metals executed a “15-year binding definitive offtake agreement” to supply rare earth concentrate from its massive Tanbreez project in Greenland directly to REalloys.

Because REalloys just landed the US Army flagship base-processing initiative, CRML’s upstream material from Greenland suddenly has a highly secure, direct, and priority route straight into the military-industrial complex.

Investors are aggressively buying Critical Metals stock today because the DoD news helps notably de-risk Tanbreez project’s path to monetization.

Analysts rate CRML at “Buy” currently, according to The Wall Street Journal.

UAMY stock is riding the coattails of the defense-mandate thesis because antimony is one of the most critically undersupplied minerals in the US defense sector.

Antimony is vital for military applications, including ammunition primers, armor-piercing bullets, night-vision goggles, and precision optics – and UAMY operates the “only” functional antimony smelter in the US.

With the market aggressively rotating capital into domestic defense-supply infrastructure on July 7th, small-cap, highly shorted names like UAMY are experiencing massive momentum bursts as traders hunt for pure-play US critical mineral stocks.

Wall Street has a consensus “Buy” rating on United States Antimony at the time of writing.

Elroy Air, Inc., a leading U.S.-based technology developer of autonomous heavy-cargo drones for defense, rapid response and commercial logistics, and Columbus

USA Rare Earth (USAR 5.81%) and Archer Aviation (ACHR 1.71%) are two of the hottest stocks in the industrial sector, and for good reasons.

In one corner is USA Rare Earth, which stands to benefit from the U.S. government's push for domestic rare-earth magnets, a crucial component in weapons and various other electronics. Meanwhile, Archer Aviation wants to dominate the skies of U.S. cities with its electric vertical take-off and landing (eVTOL) aircraft.

As promising as both companies seem, neither offers much tangible revenue yet. The better industrial stock between these two is likely the one that turns more of its hype into reality. Here's why that's most likely going to be Archer Aviation.

Image source: Getty Images.

The pitch for USA Rare Earth The United States currently imports most of its rare-earth magnets from China, arguably its biggest rival. Given that these magnets are a crucial component of weapons and other technologies, it makes sense that the government wants to establish a new source for them. The Trump administration is backing USA Rare Earth, including taking a 10% stake in the company, with additional funding and loans bringing the total capital commitment to approximately $3.5 billion.

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USA Rare Earth is using that money to develop a fully integrated supply chain, from mining and development to magnet production. The business should ramp up over the next several years.

The company should complete an expansion at its magnet factory in Oklahoma next year, with a new facility coming online in South Carolina in 2028. Commercial mining production at its Texas deposit could begin in late 2028. Management believes rare-earth magnets are a $19 billion market opportunity.

The pitch for Archer Aviation eVTOL aircraft can efficiently taxi small groups of passengers over short distances in major cities. Archer Aviation is among several eVTOL companies developing aircraft for U.S. skies, but it was the first to successfully move past Phase 3 of 4 of the FAA's regulatory approval process. Archer Aviation could provide early air taxi services across eight states as part of the White House's pilot program. It also has a contract with the U.S. Air Force for up to six aircraft.

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If Archer Aviation ultimately receives final FAA approval, it could begin commercial operations and transport U.S. customers as soon as this year. Executing these pilot programs could cement Archer Aviation's position as an industry leader and unlock greater opportunities as the eVTOL industry takes off over the coming years. According to Grand View Research's estimates, eVTOLs could become a $28.6 billion industry by the end of the decade.

Why Archer Aviation wins out USA Rare Earth has a market capitalization of $5.5 billion, while Archer Aviation's market cap is $4.2 billion. However, these companies have less than $10 million in total trailing-12-month revenue between them. It's safe to say that both stocks are very speculative; you're investing in future sales and earnings.

That future could be coming sooner rather than later. Wall Street analysts see both companies starting to post solid revenue over the next two fiscal years.

USAR Revenue (TTM) data by YCharts

So, why is Archer Aviation the better stock? It comes down to simplicity. USA Rare Earth needs several things to go right over the coming years. For instance, political support must stay strong through each election cycle. The company must keep multiple key construction projects on budget and schedule. Then, it must efficiently integrate Serra Verde into its business once that $2.8 billion acquisition closes.

Meanwhile, Archer Aviation's outlook primarily hinges on FAA approval, which would give the company a clearer growth trajectory as it builds and puts more air taxis into the skies. FAA approval is a sort of all-or-nothing hurdle, but if approved, Archer Aviation would become more predictable than USA Rare Earth. With commercial operations potentially starting this year, investors shouldn't have to wait long to find out about the FAA's approval.

Investors probably shouldn't count on either stock as a core portfolio piece. That said, risk-takers who want a bit more of a sure thing might look to Archer Aviation as the better industrial stock.

The physical economy is undergoing a structural shift. The global race to secure critical minerals sits squarely at the center of this transformation. For decades, Western markets relied heavily on Asian infrastructure to mine, process, and manufacture the rare-earth elements essential to electric vehicle motors, wind turbines, and advanced defense systems. That dynamic is rapidly fracturing. The U.S. government is actively weaponizing capital to decouple domestic supply chains from international vulnerabilities, aggressively funding homegrown alternatives.

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Pure Metal Momentum: Shifting the Investment NarrativeUSA Rare Earth NASDAQ: USAR is a primary beneficiary of this geopolitical pivot. USA Rare Earth recently commissioned its highly anticipated hydrometallurgical demonstration facility in Wheat Ridge, Colorado. This development is far beyond a simple research project.

USA Rare Earth Today

$21.81 -1.08 (-4.71%)

As of 10:35 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$9.32▼

$43.98Price Target$36.83

The Wheat Ridge facility aims to achieve commercial-quality production of separated heavy rare-earth oxides by the third quarter of 2026.

Specifically, the plant will refine dysprosium, terbium, and yttrium. These elements are notoriously difficult to process, yet they remain non-negotiable components for high-performance permanent magnets.

Commissioning the Colorado plant marks a definitive inflection point for a fully domestic mine-to-magnet supply chain.

For growth-focused capital, this rapid deployment shifts the primary investment narrative surrounding USA Rare Earth from speculative development directly to commercial execution.

Magnetic Capital: A $1.6 Billion Federal LifelineBuilding heavy industrial infrastructure requires immense capital. The balance sheets of early-stage mining and processing operators often buckle under the weight of these initial expenditures. USA Rare Earth is navigating this exact structural hurdle through unprecedented federal backing. USA Rare Earth secured a massive $1.6 billion funding package from the Department of Commerce through the CHIPS Act.

This capital injection is strategically structured, providing up to $277 million in direct federal grants alongside $1.3 billion in senior secured loan capacity. The U.S. government also holds a 10% equity stake in USA Rare Earth, acquired for $300 million at $17.17 per share. Having the federal government as a primary stakeholder effectively derisks USA Rare Earth's near-term operational runway. This dynamic provides a durable safety net against the macro headwinds that typically crush capital-intensive startups.

This financial padding allows USA Rare Earth management to scale downstream operations aggressively. Beyond the Colorado processing plant, USA Rare Earth is directing funds toward a $1.2 billion investment in a Bailey Industrial Park facility in South Carolina. Once online, this megafacility aims to produce 10,000 tonnes of NdFeB rare earth magnets and 10,000 tonnes of strip-cast alloys annually.

By controlling both the processing of raw oxides and the manufacturing of final magnets, USA Rare Earth captures substantial profit margins at multiple stages of the supply chain. Integrating these steps significantly improves USA Rare Earth's long-term unit economics compared to operators forced to outsource refining to third parties.

Global Extraction: The Serra Verde Acquisition PlayA world-class processing facility generates zero value without reliable raw materials. While USA Rare Earth continues to develop the flagship Round Top deposit in West Texas, relying on a single domestic mine introduces unacceptable timeline risks.

To mitigate this exposure, USA Rare Earth management is aggressively pursuing raw material security abroad. This strategy is highlighted by the pending $2.8 billion acquisition of Brazil's Serra Verde Group. Integrating Serra Verde's mixed rare-earth carbonate feedstocks ensures that the Colorado and South Carolina facilities maintain continuous operational volume while the Texas deposit scales toward commercial viability.

This aggressive market positioning is creating visible friction within the broader mining sector. Rival operator MP Materials NYSE: MP recently filed a lawsuit in Texas alleging that a former employee, now at USA Rare Earth, misappropriated proprietary permanent magnet technology.

Litigation introduces legal expenses and headline noise, but smart investors often view these disputes through a completely different lens. The lawsuit validates USA Rare Earth's disruptive threat to existing domestic operators. It underscores the intense competition for technical dominance in a market where early leaders will likely monopolize future Department of Defense off-take agreements.

Prospecting for Profits: Volatility in the Rare Earth TrenchesThe broader stock market is clearly reacting to these shifts. USA Rare Earth's stock price recently surpassed $23, representing a nearly 100% surge from its Jan. 1 trading price of about $12. Shares are currently trading in the middle of their 52-week range between $9.32 and $43.98.

USA Rare Earth Inc. (USAR) Price Chart for Wednesday, June, 24, 2026

Valuation metrics at this stage require a strictly forward-looking perspective. USA Rare Earth trades at a staggering price-to-sales ratio of roughly 700, against an annual sales run rate of just $7.34 million. For a mature consumer business, a multiple that high signals an extreme overvaluation. For a heavily subsidized infrastructure operator transitioning into the commercial revenue phase, it is a standard early-stage volatility marker. Wall Street is pricing in the future execution of the $1.6 billion CHIPS funding and the projected output of the South Carolina magnet facility, completely ignoring trailing revenues.

The underlying balance sheet displays robust liquidity to support this transition. First-quarter 2026 earnings per share loss of 12 cents actually beat consensus estimates by 4 cents. More importantly, USA Rare Earth operates with a massive current ratio of 36.29. This incredible cash position guarantees USA Rare Earth can fund day-to-day operations and capital projects without immediately diluting shareholders through secondary offerings.

Institutional ownership remains heavily concentrated, with legacy funds holding minor stakes while the government acts as the dominant anchor. Retail investors tracking insider activity may have noticed that Director Carolyn Trabuco recently disposed of 13,000 shares for roughly $295,000. Context is critical when evaluating insider filings. This exact transaction triggered a Section 16(b) short-swing profit clawback, requiring Trabuco to remit $208.34 to USA Rare Earth. Trabuco retains 18,783 shares. This specific event points to strict compliance management and portfolio rebalancing rather than a bearish exit by corporate leadership.

Meanwhile, the short interest sits at an elevated 10.85%.

A high short ratio highlights measurable market skepticism about USA Rare Earth's ability to execute production timelines. If the Wheat Ridge facility experiences operational delays, the premium valuation of USA Rare Earth will come under intense downward pressure. Conversely, if USA Rare Earth management hits the third-quarter production targets, that heavy short interest provides the exact kind of fuel needed to drive a violent upside short squeeze.

Magnetic North: USA Rare Earth's Ultimate TrajectoryEstablishing a domestic supply chain for critical minerals requires navigating complex engineering, massive capital expenditures, and intense geopolitical scrutiny. USA Rare Earth is systematically checking every single one of those boxes. The potent combination of secure federal funding, aggressive facility commissioning, and international feedstock acquisitions provides a clear roadmap to generating revenue. Investors seeking pure-play exposure to the reshoring of American industrial infrastructure might add USA Rare Earth to their portfolios as the Q3 2026 commercial production targets rapidly draw closer.

Should You Invest $1,000 in USA Rare Earth Right Now?Before you consider USA Rare Earth, you'll want to hear this.

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Rare-earth magnets are central to many modern technologies, including electric vehicles, wind turbines, defense and missile guidance systems, and advanced consumer electronics. For years, the U.S. has become dependent on China for mining and processing raw materials into refined magnets, a trend that has grown into a national security concern.

The U.S. is taking steps to achieve full independence in producing rare-earth permanent magnets by reshoring the supply chain, including mining, processing, and manufacturing of these crucial materials. This "mine-to-magnet" strategy has put several mining companies on the map, including USA Rare Earth (USAR 5.37%).

Over the past year, USA Rare Earth has raised significant capital from the U.S. government and outside investors to build its supply chain. Does that make the stock a buy today? Let's dive into the company and find out.

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USA Rare Earth has raised significant capital Earlier this month, USA Rare Earth finalized an agreement with the U.S. Department of Commerce for up to $1.6 billion in federal funding under the CHIPS and Science Act. This funding package consists of $277 million in direct grants and up to $1.3 billion in senior secured loan capacity. In return, the federal government received 16.1 million common shares and 17.6 million warrants.

In addition to this federal funding, the company secured another $1.5 billion in private placement funds in January, bringing total liquidity to $3.5 billion. This funding is crucial for USA Rare Earth to build out its domestic mine-to-magnet supply chain, including developing the Round Top mine in Texas and expanding its processing and manufacturing capabilities.

The mine-to-magnet company has made some huge moves USA Rare Earth is building out its near-term capabilities and has made several key acquisitions to do so. Last year, it acquired U.K.-based Less Common Metals (LCM) for $100 million in cash, plus 6.5 million shares. Building on this, in April, it acquired Serra Verde Group for approximately $2.8 billion, structured via $300 million in cash and 126.8 million newly issued common shares.

Image source: Getty Images.

This move is crucial to helping USA Rare Earth get off the ground and running. That's because Serra Verde's Pela Ema mine in Brazil is currently the only operating, large-scale producer outside Asia that supplies all four primary magnetic rare-earth elements.

In addition, the company recently announced a $1.2 billion magnet manufacturing facility in South Carolina. Combining this with its acquisition of LCM and its active permanent magnet facilities in Oklahoma helps USA Rare Earth bridge the gap between raw extraction and finished commercial products.

The expansion efforts by USA Rare Earth have management projecting that the company will reach a magnet manufacturing run rate of 600 metric tons per annum (MPTA) at its Oklahoma facility, along with 3,000 MPTA of metal-making and alloy capacity through its LCM subsidiary.

In the longer term, the company is targeting annualized production capacity of 10,000 tons of rare-earth metal alloys and 10,000 tons of Neodymium Iron Boron (NdFeB) permanent magnets, positioning it to capture high-margin market share across the defense, electric vehicle, and semiconductor sectors.

Is USA Rare Earth for you? USA Rare Earth is making progress on building its mine-to-magnet supply chain, and recent acquisitions have given its business a big boost. Looking ahead, the company will continue advancing its Round Top mine in Texas, which is rich in heavy rare-earth elements critical to the production of high-heat permanent magnets.

Another benefit of this mine is that its mineralization enables cleaner, cheaper processing of these rare-earth elements, which could enable low-cost production and provide a notable competitive advantage for USA Rare Earth. The company hopes to begin commercial production at Round Top as soon as 2028.

With this in mind, USA Rare Earth is still undergoing massive expansion efforts that will be expensive for shareholders. Its dealings with the U.S. government and other acquisitions have diluted shareholders, and scaling its mining and processing capabilities will take time, underscoring the risks of owning early-stage, start-up mining stocks.

Key Takeaways USAR commissioned a Colorado facility targeting separated rare earth oxide output in Q3 2026.USAR's Stillwater magnet line targets 600 metric tons annually by end-2026, doubling by Q1 2027.TECK plans major copper growth through Anglo Teck and advancing Zafranal and San Nicolas projects. USA Rare Earth, Inc. (USAR - Free Report) and Teck Resources Limited (TECK - Free Report) are key participants in the Zacks Mining - Miscellaneous industry. Both companies are engaged in the extraction, processing and development of minerals that are essential to modern technologies and industrial applications. USAR and TECK are well-positioned to benefit from the growing demand for critical materials used in electrification, clean energy technologies and advanced manufacturing.

Both companies operate in capital-intensive mining industries that require extensive investments in infrastructure, advanced technologies and project development, while also navigating regulatory clearances and regulatory approval processes. At the same time, growing demand for minerals and metals critical to electric vehicles, renewable energy and other clean-energy technologies is creating favorable long-term growth opportunities for these companies.

The Case for USARUSA Rare Earth has commissioned its hydrometallurgical demonstration facility in Wheat Ridge, CO, in June 2026, marking a key step in building an integrated rare earth supply chain outside China. The company expects to begin producing commercial-quality separated rare earth oxides, including NdPr, dysprosium and terbium, in the third quarter of 2026.

The facility will process material from multiple sources, including the Round Top facility, third-party feedstocks and recycled magnet swarf, while supporting feasibility studies and future commercial-scale operations.

Also, the successful commissioning of Phase 1a of USAR’s commercial magnet production line at its Stillwater, OK, facility marks an important milestone in USAR’s growth strategy. The development enables the company to begin supplying sintered NdFeB permanent magnets to customers starting in the second quarter of 2026.

The commissioning demonstrates USA Rare Earth’s capability to operate a complex rare earth magnet manufacturing process at a commercial scale. At its Stillwater facility, USAR transforms rare earth materials into high-performance NdFeB permanent magnets through a series of production steps used in end markets such as defense, aerospace and automotive.

The Phase 1a is expected to achieve an annual production run rate of 600 metric tons by the end of 2026, while the planned Phase 1b expansion is projected to double total capacity to 1,200 metric tons annually by the first quarter of 2027. Once fully operational, the Stillwater facility is expected to be among the first large-scale NdFeB magnet manufacturing facilities in the United States, supporting a more resilient domestic rare earth supply chain.

USAR has strengthened its growth strategy through a combination of financing and acquisitions. In June 2026, the company secured access to up to $1.6 billion in government-backed funding under the CHIPS Program from the U.S. Department of Commerce. The package includes up to $277 million in federal funding and up to $1.3 billion in loan support as the company advances key development milestones.

In May 2026, USA Rare Earth secured a $14.2 million grant from the Texas Semiconductor Innovation Fund to boost the development of its Round Top Mountain rare earth project in West Texas, aimed at supporting domestic supply chains for critical minerals used in defense, semiconductors, AI and advanced technologies.

Also, in March 2026, USAR agreed to acquire Texas Mineral Resources Corp. in an all-stock transaction valued at approximately $73 million, giving it full ownership of the Round Top Project. The company expects commercial production at Round Top to begin in 2028, with a long-term goal of processing nearly 40,000 metric tons of rare earth and critical mineral feedstock per day by 2030. The November 2025 acquisition of Less Common Metals is expected to provide critical metal and alloy feedstock for the Stillwater plant.

While USAR is making progress with its growth initiatives, it is still in the early stages of commercialization and continues to report losses as it scales its operations. While the acquisition of Less Common Metals has started contributing to revenues, profitability remains under pressure from higher operating expenses associated with expansion efforts, acquisitions and workforce additions.

In the first quarter of 2026, selling, general and administrative expenses surged to $21.2 million from $7 million in the prior-year period, driven by higher legal, consulting and personnel-related costs. Research and development expenses also rose to $14.2 million from $1.7 million a year ago, reflecting increased investment in product development and growth initiatives.

The Case for TECKAs part of its long-term growth strategy, Teck Resources is increasing its focus on copper and other critical minerals that are essential for electrification and clean energy technologies. The company has agreed to merge with Anglo American plc to form the Anglo Teck group, creating one of the world's largest copper-focused mining companies. It will have more than 70% exposure to copper and is set to be among the top five global copper producers. The new company will consist of six world-class copper assets and premium iron ore and zinc operations with a combined annual copper production of 1.2 million tons. It is projected to grow 10% to 1.35 million tons by 2027, strengthening its position in the global copper market.

Teck Resources is further strengthening its copper growth pipeline by advancing several development projects toward sanction readiness. The company is progressing with permitting activities, securing land access and refining the business cases for its Zafranal and San Nicolás projects.

Zafranal is expected to have a mine life of 19 years and produce copper-gold concentrates through open-pit mining and conventional processing. The project is anticipated to generate an average of 126,000 tons of contained copper annually during its first five years of operation. Meanwhile, the San Nicolás project is advancing through the feasibility study stage and is expected to produce approximately 63,000 tons of copper and 147,000 tons of zinc annually during its first five years, on a 100% ownership basis.

Also, the Highland Valley Mine Life Extension is expected to extend the mine’s life from 2028 to 2046. Expected average annual copper production will likely be 132,000 tons over the life of the mine. The company expects to increase copper production to around 800,000 tons before the end of this decade.

However, the company’s zinc in concentrate production declined to 120 thousand tons in the first quarter of 2026 from 137 thousand tons a year earlier, reflecting lower grades at Red Dog in line with the mine plan. TECK expects zinc production to trend lower over the next three years as the mine approaches the end of its life. Full-year 2026 zinc production guidance is 410-460 thousand tons compared with 565 thousand tons produced in 2025.

Operating costs at several assets increased year over year due to higher contractor, energy and maintenance expenses. The company highlighted exposure to fuel price volatility and higher freight and explosives costs linked to geopolitical developments. Even though there is currently no significant risk of fuel supply disruption, the company expects an impact on costs at its Chilean operations due to the requirement for diesel imports.

How Does the Zacks Consensus Estimate Compare for USAR & TECK?The Zacks Consensus Estimate for USAR’s 2026 bottom line is pegged at a loss of 35 cents per share. Also, the company’s consensus estimate for the 2027 bottom line is pegged at a loss of 32 cents per share.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for TECK’s 2026 bottom line is pegged at $3.35 per share. Also, the company’s consensus estimate for 2027 bottom line is pegged at $2.89 per share.

Image Source: Zacks Investment Research

Price Performance and Valuation of USAR & TECKIn the past year, USAR’s shares have surged 103%, while TECK stock has gained 71.9%. 

Image Source: Zacks Investment Research

USA Rare Earth is trading at a forward 12-month price-to-earnings ratio of negative 73.33X while Teck Resources’ forward earnings multiple sits at 21.39X.

Image Source: Zacks Investment Research

Final TakeUSAR is benefiting from the ramp-up of its commercial magnet production line, along with strategic acquisitions and investments designed to build a fully integrated domestic rare earth supply chain. The acquisitions of Less Common Metals and Texas Mineral Resources are expected to enhance the company’s operational capabilities and support its long-term growth strategy. However, USAR remains in the early stages of commercialization and continues to incur losses as it invests in capacity expansion, technology development and other growth initiatives.

In contrast, Teck Resources’ strong performance in the coming quarters is supported by its scale of operation, asset diversity and strategic transformation. The planned merger with Anglo American will create a global copper and critical minerals leader, with more than 70% exposure to copper. Though near-term zinc in concentrate production at Red Dog has been impacted by operational issues, TECK’s long-life assets and growth projects are expected to lower execution risk.

Given these factors, TECK seems a better pick for investors than USAR currently. While TECK Materials carries a Zacks Rank #3 (Hold) at present, USA Rare Earth has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Issued on behalf of Greenland Mines Ltd.

, /PRNewswire/ -- USANewsGroup.com News Commentary — As of January 1, 2027, U.S. defense systems will be barred from using neodymium-iron-boron magnets containing Chinese-origin rare earths, and Western governments are scrambling to stand up a supply chain that, for two decades, was allowed to migrate almost entirely to China. That deadline has turned what was once a sleepy corner of the mining world into one of the most strategically charged investment themes of the decade — and it is sending capital toward the handful of companies that can credibly point to magnet-grade rare earth deposits and the processing know-how to turn them into finished product.

Against that backdrop, Greenland Mines Ltd. (Nasdaq: GRML) has moved to accelerate development of its Sarfartoq neodymium-praseodymium (Nd-Pr) rare earth magnet project in southwest Greenland, announcing it has engaged Tetra Tech Canada Inc. and GeoSim Services Inc. to prepare an updated Mineral Resource Estimate (MRE) compliant with the U.S. Securities and Exchange Commission's Regulation S-K 1300.

Key Takeaways

Greenland Mines (Nasdaq: GRML) engaged Tetra Tech and GeoSim to prepare an updated S-K 1300 Mineral Resource Estimate for its Sarfartoq Nd-Pr rare earth project, targeting substantial completion by this summer, subject to internal review and approval.Sarfartoq carries a high Nd-Pr ratio — approximately 25%–40% of the total rare earth oxide (TREO) basket — which the company believes is among the higher such ratios reported globally, concentrating value in the two elements that drive magnet economics.The work program leans on continuity of technical leadership: GeoSim's Ronald G. Simpson, P.Geo., served as Qualified Person on the historical 2011 and 2012 resource estimates and as a principal author of the 2011 Preliminary Economic Assessment (PEA).Sarfartoq remains subject to closing of the previously announced transaction with Neo Performance Materials, and the formal transfer of the exploration licenses with Greenland authorities is underway — important conditions investors should weigh.The acceleration lands amid a sector-wide push — from MP Materials (NYSE: MP), USA Rare Earth (Nasdaq: USAR), and Energy Fuels (NYSE American: UUUU) — to build a Western, non-China mine-to-magnet supply chain ahead of a January 1, 2027 prohibition on Chinese-origin magnets in U.S. defense systems.An accelerated path to an updated resource

Under a consulting services agreement dated June 11, 2026, GeoSim has been engaged to act as Qualified Person for the S-K 1300-compliant MRE at Sarfartoq, with the work led by Ronald G. Simpson, P.Geo. Tetra Tech has been retained under a parallel technical services mandate to provide engineering and metallurgical support. According to the company, the updated MRE is expected to form the basis for an updated PEA and to support future technical studies and public disclosure.

The timeline is deliberately compressed. Greenland Mines says the S-K 1300 work program is expected to be advanced on an accelerated basis and substantially completed by this summer, which would allow the company to announce an updated mineral resource for Sarfartoq and file a supporting S-K 1300 Technical Report Summary shortly thereafter — subject to customary internal review and approval. Management has signaled it intends to leverage the updated MRE into an expedited refresh of the 2011 PEA, with a focus on positioning Sarfartoq as an advanced Nd-Pr development project with downstream relevance to U.S. and European markets.

Ahead of closing the Sarfartoq acquisition, the company has also initiated the formal transfer process for the Sarfartoq exploration licenses with the relevant Greenland authorities, and says its local team in Nuuk is in active dialogue with regulators to facilitate an orderly transfer. It is a reminder that, for now, Sarfartoq is an asset Greenland Mines is moving toward — not one it holds outright — and the conditional language matters.

Why the Nd-Pr ratio is the story

Not all rare earth deposits are created equal. The value in the magnet supply chain is concentrated in neodymium and praseodymium — the two elements that, alloyed with iron and boron, make the permanent magnets that spin electric-vehicle motors, pitch wind-turbine blades, and actuate the control surfaces of guided defense systems. A deposit heavy in those two elements is worth disproportionately more, ton for ton, than one dominated by the cerium and lanthanum that sit lower on the value curve.

That is what Greenland Mines is leaning on at Sarfartoq. The company describes the project as an advanced carbonatite-hosted magnet rare earth deposit with Nd-Pr constituting roughly 25%–40% of the TREO basket — a ratio it believes ranks among the higher figures reported globally. Historic work, including the 2011 PEA, outlined both open-pit and underground development concepts, and the current program is expected to revisit those alternatives while examining hybrid sequencing — an initial open-pit phase followed by a later underground phase. Tetra Tech's mandate specifically includes pit-shell and underground optimization studies, evaluation of starter-pit options, and updated metallurgical recovery assumptions.

Re-engaging GeoSim and Mr. Simpson — who have been involved with Sarfartoq for more than a decade — gives the company continuity of technical oversight and a direct line back to the geological model and database that established the project as one of Greenland's more advanced rare earth stories. In parallel, Greenland Mines has re-appointed WSP Danmark A/S to complete a second year of environmental baseline data collection, building on first-year work initiated under the prior owners. The updated MRE will also integrate additional drilling and internal resource modeling completed by Neo Performance Materials and its subsidiary between 2023 and 2025, which are to be transferred as part of the acquisition.

Part of a broader Greenland platform

Greenland Mines frames Sarfartoq not as a standalone asset but as one piece of a broader multi-asset strategy built around Greenland mineral projects and downstream optionality in the North Atlantic. The company's stated approach combines advanced upstream projects in Greenland with potential downstream processing and industrial partnerships in allied jurisdictions, including Iceland, to support more resilient supply chains serving the United States, North America, and Europe.

Within that framework, Sarfartoq adds magnet rare earth exposure alongside the company's Skaergaard precious- and critical-metals project, giving Greenland Mines a Nasdaq profile spanning the energy-transition, defense, and strategic-materials themes. The company has also pointed to its previously announced transaction structure with Neo Performance Materials — including Neo's right to purchase up to 60% of Sarfartoq Nd-Pr production — as support for the project's relevance within a potential Western-aligned mine-to-magnet value chain. As with the resource work itself, those arrangements remain tied to closing.

A sector racing the same clock

Greenland Mines is moving into a theme that has drawn some of the most aggressive capital and policy support in the mining world. The reason is a hard deadline: beginning January 1, 2027, U.S. defense systems will be prohibited from incorporating neodymium-iron-boron magnets that contain Chinese-origin rare earths — a restriction that has galvanized a scramble to build domestic and allied alternatives across the entire chain, from mining to metallization to finished magnets.

The clearest barometer of how seriously Washington takes the problem is MP Materials Corp. (NYSE: MP). The operator of the Mountain Pass mine in California — the only large-scale rare earth mining and processing operation in North America — struck a multibillion-dollar partnership with the U.S. Department of Defense in 2025 that included a 10-year price-floor commitment of $110 per kilogram for its Nd-Pr products and a 10-year magnet offtake arrangement. The company reported record Nd-Pr production in the first quarter of 2026 and has been building out domestic magnet manufacturing in Texas.

"This initiative marks a decisive action by the Trump administration to accelerate American supply chain independence," said James Litinsky, Founder, Chairman, and CEO of MP Materials, on the Department of Defense partnership. "We are proud to enter into this transformational public-private partnership."

Further down the chain, USA Rare Earth, Inc. (Nasdaq: USAR) is racing to stand up domestic magnet manufacturing. In March 2026, the company commissioned its commercial magnet production line at its Stillwater, Oklahoma facility, enabling it to begin filling orders for sintered neodymium-iron-boron magnets. It has since moved to consolidate feedstock, including an agreement to acquire the Serra Verde rare earth operation in Brazil.

"Today's announcement is a major step in delivering on our ambition to build a global champion and the partner of choice in rare earth elements, oxides, metals and magnets," said Barbara Humpton, Chief Executive Officer of USA Rare Earth, on commissioning the Stillwater line. "As we scale production, we are proud to help reduce reliance on foreign manufacturing while serving industries critical to our nation and its allies."

And on the processing side, Energy Fuels Inc. (NYSE American: UUUU) has been advancing one of the few operating rare earth separation capabilities in the United States at its White Mesa Mill in Utah, where it produces Nd-Pr oxide and has piloted production of the heavier rare earths dysprosium and terbium. In January 2026, the company released a bankable feasibility study for a Phase 2 expansion it says would rank among the lowest-cost Nd-Pr production globally.

"Energy Fuels is on the cusp of solving America's rare earth processing 'bottleneck'," stated Mark S. Chalmers, then-CEO of Energy Fuels, on the Phase 2 feasibility results in January 2026. (Chalmers retired in April 2026, with Ross Bhappu appointed President and CEO.) The company's progress underscores a point relevant to any aspiring developer: a deposit is only as valuable as the chain that can process it.

That is the competitive set Greenland Mines is stepping into — not as a peer in scale or stage to producers like MP Materials, but as an earlier-stage developer betting that a high Nd-Pr ratio, continuity of technical work, and a strategically located Greenland asset can earn it a place in the Western supply-chain conversation. Whether that bet pays off will depend on the updated MRE, the PEA refresh, the closing of the Neo transaction, and the license transfer — each of which carries execution risk that the company itself flags.

What to watch

The near-term catalysts are clearly defined. The first is the updated S-K 1300 MRE, which the company targets for substantial completion by this summer, followed by the filing of a Technical Report Summary. The second is the refreshed PEA that the MRE is intended to feed. The third — and the most fundamental — is the closing of the Sarfartoq transaction with Neo Performance Materials and the completion of the license transfer with Greenland authorities, without which the rest of the program is conditional. Investors will also be watching the second year of environmental baseline work as a marker of permitting readiness.

For a market that has spent two years rewarding rare earth stories tied to the 2027 deadline, Greenland Mines offers a differentiated angle: magnet-grade mineralogy in an allied Arctic jurisdiction, paired with a stated North Atlantic processing vision. The qualifier — and it is a real one — is that much of the thesis still rests on studies yet to be completed and a transaction yet to close. The coming months should provide the evidence.
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SOURCES

Greenland Mines Ltd. news release, "Greenland Mines (NASDAQ: GRML) Accelerates Sarfartoq Rare Earths Project Development with Updated S-K 1300 Resource Estimate Program," June 18, 2026.MP Materials Corp. news release, "MP Materials Announces Transformational Public-Private Partnership with the Department of Defense," 2025; and Q1 2026 results, May 7, 2026.USA Rare Earth, Inc. news release, "USA Rare Earth Achieves Major Operational and Strategic Milestone with Commissioning of Phase 1a Magnet Production at Stillwater Facility," March 26, 2026.Energy Fuels Inc. news release, "U.S. Rare Earth Processing Expansion ... Among the Lowest Cost NdPr Production in the World," January 15, 2026; and 2025 results / 2026 guidance, February 26, 2026.DISCLAIMER

Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group Limited, a company incorporated under the laws of Ireland ("MIQL"). MIQL has been paid a fee for Greenland Mines Corp. advertising and digital media from Creative Digital Media Group ("CDMG"). There may be 3rd parties who may have shares of Greenland Mines Corp., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQL and/or our associated currently own shares of Greenland Mines Corp. which were purchased in the open market and reserve the right to buy and sell, and will buy and sell shares of Greenland Mines Corp. at any time without any further notice commencing immediately and ongoing. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material, including this article, which is disseminated by MIQL has been reviewed and approved on behalf of Greenland Mines Corp. by CDMG. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

CAUTIONARY NOTE REGARDING MINERAL RESOURCES:

The Mineral Resource Estimates referenced in this article were prepared in accordance with NI 43-101 by SLR Consulting as disclosed in the technical report dated November 22, 2022. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The gross undiscounted in-situ metal values expressed herein are illustrative calculations using February 2026 metal prices and do not account for mining recoveries, metallurgical losses, capital costs, operating costs, royalties, taxes, permitting requirements, or any other technical or economic factors. These values are not indicative of future revenue, project economics or net present value. No preliminary economic assessment, pre-feasibility study, or feasibility study has been completed on the Skaergaard Project, and there is no certainty that the Mineral Resources disclosed will be converted to Mineral Reserves or that an economically viable mining operation can be established.

FORWARD-LOOKING STATEMENTS:

This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward-looking statements in this publication include that demand for platinum group metals and critical minerals will continue to grow and tighten; that Greenland Mines Ltd's Skaergaard Project will advance through its planned technical, metallurgical, and environmental work programs as described; that the Company's engagements with SLR Consulting, GTK Mintec, and WSP will proceed as planned; that the Iceland LOI will progress toward a binding agreement with the cost and savings characteristics described; that comparable companies will perform as expected. The forward-looking information contained herein is provided for the purpose of assisting the reader to understand the Company's business, however such information may not be appropriate for other purposes. Risks that could change or prevent these statements from coming to fruition include changing governmental laws and policies; permitting risks; the Company's ability to obtain and retain necessary licensing; political and competitive risks; failure of forecasts and assumptions to come to fruition; metal price volatility; the inherent uncertainty of mineral resource estimates; and other unforeseen circumstances. The publisher of this article does not take responsibility for the accuracy of any statements made by the issuing company or its representatives. Readers are cautioned not to place undue reliance on these forward-looking statements, and the publisher undertakes no obligation to update or revise any forward-looking statements except as required by applicable law.

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Key Takeaways USAR commissioned its Wheat Ridge demo facility to advance domestic rare earth processing.USAR began testing ore, third-party feedstock and recycled magnet swarf processing.USAR expects campaign data to support the Round Top feasibility study due by Q1 2027. USA Rare Earth, Inc. (USAR - Free Report) is advancing its growth strategy with the successful commissioning of its hydrometallurgical demonstration facility in Wheat Ridge, CO. This milestone marks a key step in the company's efforts to establish a fully integrated domestic rare earth supply chain and positions it to begin producing separated heavy rare earth oxides in the third quarter of 2026.

Over the past year, USAR expanded its integrated platform of proprietary technologies and capabilities spanning mining, processing and separation, metals, alloys and magnets. The company also prepared the Wheat Ridge facility for demonstration-scale operations to support future commercial processing activities.

The facility has started initial campaigns to test and optimize three processing methods simultaneously: processing ore from the Round Top project, processing third-party mixed rare earth carbonate (MREC) feedstock, including material from Serra Verde's Pela Ema mine, and recycling rare earth magnet swarf. The resulting oxides are expected to support downstream metal, alloy and magnet production through Less Common Metals, one of the few commercial-scale metal, alloy and strip cast producers outside China. Heavy rare earth oxides such as dysprosium, terbium and yttrium are critical materials used in defense, energy, electric vehicle and other advanced technology applications.

The demonstration campaigns are expected to generate operational data that will support the Round Top Definitive Feasibility Study, which remains on track for completion in the fourth quarter of 2026 and publication in the first quarter of 2027. As operations advance, the Wheat Ridge facility is expected to play an important role in strengthening the U.S. rare earth supply chain.

Snapshot of USA Rare Earth’s PeersAmong its major peers, NioCorp Developments Ltd. (NB - Free Report) is working to move its Elk Creek Project in Nebraska closer to production. In August 2025, NioCorp completed its first drilling program at the Elk Creek Project on schedule and within budget. In February 2026, NioCorp started construction of the main underground access for its Elk Creek Critical Minerals Project in southeast Nebraska.

USAR’s other peer, Trilogy Metals Inc. (TMQ - Free Report) , continues to make steady progress at the Ambler mining district. Although Trilogy is not yet in production, it is taking a step ahead with Ambler Metals LLC, which is a joint venture with South32 Limited. In July 2025, Trilogy began a multi-year core re-boxing program to protect drill core for long-term future use.

USAR’s Price Performance, Valuation & EstimatesShares of USAR have gained 90% in the past year compared with the industry’s growth of 50.3%.

Image Source: Zacks Investment Research

From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 71.85X against the industry’s average of 14.92X. USA Rare Earth carries a Value Score of F.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for USAR’s 2026 earnings has decreased over the past 30 days.

Image Source: Zacks Investment Research

USA Rare Earth remains a Strong Buy, driven by rapid midstream buildout and significant government funding de-risking execution. USAR secured $1.6 billion in low-cost government funding, and with $1.7 billion in cash, USAR is now very well-capitalized. Serra Verde is expected to deliver $550–$650 million annualized EBITDA by 2027, with USAR trading at a 24% EV/EBITDA discount to sector averages.

Among the various corners of the stock market, few have attracted as much attention as rare-earth element companies. This comes as the global economy looks to loosen China’s grip on this market by investing in non-Chinese supply chains.

Critical Metals Today

$9.71 +0.00 (+0.04%)

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52-Week Range$2.53▼

$32.15 Notably, the U.S. government has extended, or could soon extend, funding to companies such as MP Materials NYSE: MP and USA Rare Earth NASDAQ: USAR. Overall, these stocks have delivered returns of more than 250% and 80% since the start of 2025, respectively.

However, there is a much smaller player in this space worth keeping an eye on, Critical Metals NASDAQ: CRML. The stock has put up much smaller gains, up over 30% since the start of 2025. This comes as Critical Metals is an earlier stage of its journey compared to MP Materials and USA Rare Earth. Nonetheless, the company has amassed a set of critical assets and partnerships that could make it a real player in the rare-earth industry long-term. However, as an early-stage firm, it also faces big risks.

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The Tanbreez Project: Critical Metal’s Crown JewelCritical Metal’s key asset is its Tanbreez Project in southern Greenland. Tanbreez is one of the world’s largest hard rock rare earth deposits, with a particularly strong concentration of heavy rare earths. Heavy rare earths are notable due to their use in some of the most advanced technological applications. This includes defense guidance systems, EV motors, and wind turbine generators. Because of this, and their rarity compared to light rare earths, “heavies” also fetch much higher prices.

However, actual mining activity at Tanbreez has not yet begun, and Critical Metals does not expect mining to begin for multiple years. Currently, Critical Metals is targeting first ore production during Q4 2028 or Q1 2029. The company is also targeting concentrate export by Q3 2029—which would conceivably mark the start of product revenue from the site.

Thus, Critical Metals does not generate revenue today. Although, it recorded around $560,000 in “other income” during its latest fiscal year 2025, which ended in calendar Q2 2025. Note that, as a small foreign company, Critical Metals does not provide quarterly financial statements. The company burned around $14.5 million in cash, ending the period with $7.3 million in cash and equivalents. With revenue generation still far off, accumulating funding is key to Critical Metals' ability to continue operating.

Critical Improves Cash Position, Announces Multiple Offtake DealsImportantly, Critical Metals has been able to source financing since the last reporting. It entered into an agreement to receive $50 million in gross proceeds in October 2025. Then, in a May announcement, the company noted that its standalone cash balance was approximately $124 million. This would give the firm a solid amount of cash in relation to its cash burn of $14.5 million.

Meanwhile, Critical Metals has made several moves to secure its strategic position and future demand. First off, the Greenland Government approved a transfer that massively increased Critical’s ownership in Tanbreez from less than 50% to 92.5%. Markets saw this as an important step forward, with CRML shares rising 35% as Critical consolidated ownership around Tanbreez. The company went on to announce the acquisition of European Lithium in an $835 million stock transaction. Upon closing, this would bring the company’s ownership in Tanbreez to 100%.

Other key developments sit on the production and demand side. The company announced a non-binding agreement with a Saudi Arabian conglomerate to construct and operate an up to $1.5 billion processing facility in the country. The agreement also includes offtake rights for 25% of Tanbreez’s rare earth concentrate production. However, these rights now stand lower than 25%, as that figure reflected Critical’s Tanbreez ownership before it increased its stake in the project.

The company then went on to sign a 15-year binding agreement with REalloys NASDAQ: ALOY. With this, REalloys will purchase 15% of Tanbreez’s annual concentrate production, based on Critical’s increased ownership percentage of 92.5%.

What to Watch Next: Critical Metal’s Annual FilingIn summary, Critical Metals has recently seen several positive developments. The company has significantly strengthened its cash position, allowing it to continue funding the advancement of Tanbreez. Additionally, multiple partners have lined up to eventually offtake Tanbreez's supply, providing a level of future demand security.

Still, Critical Metal’s success hinges on getting Tanbreez up and running, and there is no guarantee that will happen. The mining industry is notoriously hard to navigate, with developing new sites being a lengthy process subject to environmental and regulatory setbacks. However, diversifying away from China in rare earths has become a clear priority for governments and enterprises alike. Considering these competing factors, Critical Metals is a very high-risk but high-potential stock.

The company’s fiscal year 2026 annual filing, or its 20-F, will be crucial to monitor. Critical Metals typically releases its annual filing in October. This document should reveal where the firm’s cash position sits after its latest funding agreements, acquisitions, and expenses.

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Earlier this year, the Trump administration launched Project Vault, a $12 billion initiative designed to establish a U.S. Strategic Critical Minerals Reserve. The purpose is to stockpile critical minerals and protect domestic manufacturers from potential global supply chain disruptions.

This is one of the initiatives to boost the supply and manufacturing of rare-earth elements and other critical minerals in the U.S. The U.S. has also provided funding to domestic companies to boost their mining and processing capabilities.

USA Rare Earth (USAR 2.53%) is one such beneficiary. The company recently announced a new facility in South Carolina that will help it scale the production of key magnets used in modern technologies. Here's what investors need to know about the move and what's next from here.

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USA Rare Earth has made some major moves over the past year This month, USA Rare Earth selected Cherokee County, South Carolina, as the site for its new manufacturing facility. The company will invest $1.2 billion in the 800,000-square-foot facility, where it plans to manufacture 6,400 metric tons of sintered neodymium-iron-boron (NdFeB) permanent magnets and 5,000 metric tons of refined rare-earth metals. Site work will start later this year, with the facility expected to come online in 2028.

The move comes as USA Rare Earth looks to boost the domestic production of critical minerals and the permanent magnets made from them, which are key components in many of today's technologies, including electric vehicles, wind turbines, defense guidance systems, and consumer electronics.

Image source: Getty Images.

Earlier this year, the U.S. government invested $1.6 billion in USA Rare Earth through the CHIPS and Science Act, including $1.3 billion in senior secured loans and $277 million in direct federal incentives. In return, the Department of Commerce received 16.1 million shares of common stock and approximately 17.6 million warrants.

The new facility is just one of several moves made by USA Rare Earth in the past year, as the U.S. looks to reduce its dependence on China for critical minerals. In recent months, USA Rare Earth has acquired Serra Verde Group for $2.8 billion and Less Common Metals for about $220 million, bridging the timing gap between the development of its resource-rich Round Top mine in Texas, which will begin commercial production in 2028.

Investors bullish on the U.S. build-out of its critical minerals supply chain may find USA Rare Earth intriguing, but it will take time for the company to scale up and begin generating meaningful revenue. Analysts covering the stock project sales of $79 million this year, $550 million next year, and $1.4 billion by 2028.

With its expanded manufacturing capabilities, the company looks to produce 10,000 metric tons per year of NdFeB permanent magnets and 10,000 metric tons of heavy rare-earth metals and alloys by the early 2030s, potentially positioning USA Rare Earth as a key player in the U.S.'s ongoing "mine-to-magnet" initiative.

Key Takeaways USAR commissioned Phase 1a in Oklahoma, targeting 600 metric tons of NdFeB magnets by 2026.MP lifted Q1 revenues 49% to $90.6M as NdPr and rare-earth oxide output hit records.USAR secured grants, financing and federal support while expansion costs pressured results. USA Rare Earth, Inc. (USAR - Free Report) and MP Materials (MP - Free Report) are two prominent players operating in the Zacks Mining - Miscellaneous industry. Both companies are based in the US and as peers, each is engaged in the extraction and development of important minerals that support electrification, clean energy technologies and advanced manufacturing.

Both companies operate in highly capital-intensive mining sectors that require substantial upfront investments, extended project timelines and complex regulatory approvals. Their businesses are also closely tied to large-scale infrastructure development and the adoption of advanced processing technologies. Accelerating demand for critical minerals and metals used in electric vehicles, battery storage and renewable energy systems is opening up significant long-term growth opportunities. However, the ongoing Iran-Israel conflict has heightened supply-side concerns by disrupting global trade flows and impacting energy markets, leading to tighter commodity supplies and increased price volatility.

The Case for USARUSAR has reached a major milestone with the commissioning of Phase 1a of its commercial magnet production line at the Stillwater facility in Oklahoma, enabling it to begin fulfilling customer orders for sintered neodymium-iron-boron (NdFeB) permanent magnets in the second quarter of 2026.

The commissioning demonstrates USAR’s ability to execute a complex, multi-step manufacturing process at commercial scale. The Stillwater facility converts rare earth and metallic elements into ultra-fine powder, which is refined through jet milling in a controlled environment before being shaped, coated and magnetized into NdFeB permanent magnets used in defense, aerospace, automotive and other high-growth industries.

Phase 1a is expected to achieve an annual production run rate of 600 metric tons by the end of 2026, while the planned Phase 1b expansion is projected to double total capacity to 1,200 metric tons annually by the first quarter of 2027. Once fully operational, Stillwater is expected to be among the first large-scale NdFeB magnet manufacturing facilities in the United States, supporting a more resilient domestic rare earth supply chain.

USAR is also strengthening its long-term growth platform through strategic investments and partnerships. In May 2026, the company secured a $14.2 million grant from the Texas Semiconductor Innovation Fund to boost the development of its Round Top Mountain rare earth project in West Texas, aimed at supporting domestic supply chains for critical minerals used in defense, semiconductors, AI and advanced technologies.

To support expansion, USAR reinforced its balance sheet through financing and acquisitions. In January 2026, the company completed a $1.5 billion PIPE financing to fund upgrades at the Stillwater facility, expand magnet finishing operations and complete Line 1b, increasing planned NdFeB magnet production capacity to roughly 1,200 metric tons. In March 2026, USAR agreed to acquire Texas Mineral Resources Corp. in an all-stock transaction valued at approximately $73 million, giving it full ownership of the Round Top Project. The company expects commercial production at Round Top to begin in 2028, with a long-term goal of processing nearly 40,000 metric tons of rare earth and critical mineral feedstock per day by 2030. In addition, the November 2025 acquisition of Less Common Metals is expected to provide critical metal and alloy feedstock for the Stillwater plant.

USAR also secured federal support in January 2026 through a non-binding Letter of Intent with the U.S. Department of Commerce and collaboration with the U.S. Department of Energy. Under the CHIPS Program, the Department of Commerce proposed $277 million in federal funding alongside a $1.3 billion senior secured loan, representing a potential total support package of $1.6 billion.

Despite these growth catalysts, USAR remains in the early stages of commercialization and continues to report losses as it scales operations. Although revenue generation began following the acquisition of Less Common Metals, rising operating costs tied to expansion, acquisitions and workforce growth continue to pressure profitability.

In first-quarter 2026, selling, general and administrative expenses rose to $21.2 million from $7 million a year earlier, driven by higher legal and consulting expenses, increased headcount, recruiting costs and other operational spending. Research and development expenses also climbed sharply to $14.2 million from $1.7 million in the prior-year quarter, reflecting higher employee-related expenses and development investments.

The Case for MP MaterialsMP Materials operates the Mountain Pass mine and processing facility, producing refined rare-earth products, concentrates and related materials. The company also owns the Independence facility in Fort Worth, TX, where it produces magnetic precursor products and began producing neodymium-iron-boron (NdFeB) permanent magnets in December 2025.

In 2025, MP achieved several strategic milestones, including a long-term agreement to supply U.S.-made recycled rare-earth magnets to Apple and a public-private partnership with the U.S. Department of War (DoW) to accelerate the development of a domestic magnet supply chain. Supported by government incentives, the company is constructing its second domestic magnet manufacturing site, the 10X Facility in Northlake, TX, which is expected to expand total U.S. magnet production capacity to 10,000 metric tons. At the same time, MP continues to scale operations at Independence, while commissioning activities for heavy rare earth separation are expected to begin soon at Mountain Pass.

Operational performance remained strong in the first quarter of 2026 as the company continued expanding production and downstream capabilities. NdPr production reached a record 917 metric tons, increasing 63% year over year due to higher separated-product output. Rare-earth oxide concentrate production also hit a quarterly record of 12,983 metric tons, up 6% year over year, supported by improved recoveries and stronger operating efficiencies.

Total company revenues rose 49% year over year to $90.6 million in the quarter, supported by stronger performance in both the Materials and Magnetics segments. MP also recognized $42.3 million in income related to its price protection agreement with the DoW.

However, profitability remains under pressure as the company transitions toward higher-value separated rare-earth products and magnetic materials. Cost of sales increased 52% in the quarter, while SG&A expenses rose 39%. Start-up costs surged more than 500% due to magnet production and chlor-alkali facility ramp-ups, while advanced project and development expenses climbed 302%.

MP Materials reported an operating loss of $24 million in the first quarter of 2026, an improvement from a loss of $34.8 million in the prior-year quarter. The company also reported adjusted earnings of three cents per share compared with an adjusted loss of 12 cents per share a year earlier. Looking ahead, management expects cost pressures to persist as production ramps up further, with start-up expenses likely to remain elevated in the coming quarters.

How Does the Zacks Consensus Estimate Compare for USAR & MP?The Zacks Consensus Estimate for USAR’s 2026 bottom line is pegged at a loss of 33 cents per share. Also, the company’s consensus estimate for the 2027 bottom line is pegged at a loss of 32 cents per share.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MP’s 2026 bottom line is pegged at 16 cents per share. Also, the company’s consensus estimate for 2027 bottom line is pegged at $1.06 per share.

Image Source: Zacks Investment Research

Price Performance and Valuation of USAR & MPIn the past six months, USAR’s shares have surged 122.1%, while MP stock has gained 12.3%. 

Image Source: Zacks Investment Research

USA Rare Earth is trading at a forward 12-month price-to-earnings ratio of negative 81.92X, while MP Materials’ forward earnings multiple sits at 193.29X.

Image Source: Zacks Investment Research

Final TakeUSAR recently commissioned Phase 1a of its Stillwater magnet production facility and strengthened its long-term growth strategy through acquisitions, financing, government support and expansion plans to build a domestic rare earth supply chain. However, despite starting to generate revenues, the company continues to face near-term profitability pressure from rising operating and research & development expenses tied to commercialization and expansion.

MP Materials benefits from integrated operations, expanding production capacity and strategic partnerships with Apple and the U.S. government, positioning it well to capitalize on the growing domestic rare-earth supply chain. However, near-term profitability may remain under pressure due to elevated operating and expansion-related costs.

Given these factors, MP seems a better pick for investors than USAR currently. While MP Materials carries a Zacks Rank #3 (Hold) at present, USA Rare Earth has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

America’s Rare Earth Champions ClashAccording to a complaint filed in Texas, MP Materials alleges that USA Rare Earth unlawfully obtained technology used to improve the performance of permanent magnets. The technology is a key component in products ranging from smartphones and consumer electronics to military equipment and electric vehicles.

The company claims a former employee disclosed proprietary information after joining USA Rare Earth last year.

“USA Rare Earth has repeatedly failed to meet its commercial and performance targets and is now resorting to stealing technology to dig itself out,” MP Materials alleged in the filing, Financial Times reported.

USA Rare Earth pushed back, saying MP Materials had “misrepresented our company, our culture, and our people” and that it would defend itself vigorously.

The dispute arrives at an awkward moment for Washington’s effort to build a domestic alternative to China’s rare-earth ecosystem.

A Supply Chain Built To Challenge ChinaBoth companies occupy important positions in the government’s critical minerals strategy.

The broader goal is clear: reduce America’s dependence on China, which remains the dominant force across much of the global rare-earth supply chain.

The Stakes Extend Beyond A LawsuitThe timing of the dispute highlights how competitive the race to build a domestic rare-earth industry has become.

As Western governments scramble to secure supplies of critical minerals, companies are increasingly racing to establish businesses that span mining, processing, and magnet manufacturing. Being among the first to build that integrated supply chain could unlock valuable commercial partnerships and government support.

MP Materials has already signed a magnet supply agreement with General Motors Co (NYSE:GM), while USA Rare Earth is working toward commercial-scale mining and manufacturing operations later this decade.

For investors, the lawsuit represents more than a legal fight between two companies.

It is a reminder that America’s effort to loosen China’s grip on rare earths is still in its early stages—and that some of the fiercest battles may be taking place between domestic rivals, not overseas competitors.

Photo: RHJPhtotos / Shutterstock

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Key Takeaways USAR was selected for up to $19.3M in DOE funding to advance U.S. rare earth processing.USAR plans a pilot rare earth separation facility for clean energy, electronics, defense and manufacturing.USA Rare Earth signed a January 2026 LOI tied to proposed CHIPS funding and a secured loan. USA Rare Earth, Inc. (USAR - Free Report) has been selected to secure a maximum of $19.3 million in funding from the U.S. Department of Energy (DOE). The funding will help advance the development of rare earth element (REE) processing capabilities in the United States. The funding is subject to final approval.

The project is estimated to be worth approximately $50.5 million, with as much as $19.3 million anticipated from DOE funding and the balance expected to come from non-government sources.

The project aims to build a pilot-scale facility for separating rare earth elements, an important step in making these materials usable for industries such as clean energy, electronics, defense and advanced manufacturing. Rare earth elements are critical for products like electric vehicles, wind turbines, smartphones and military equipment.

At present, rare earth processing is heavily concentrated in a few regions globally, creating supply-chain risks for countries that rely on these materials. By increasing domestic processing capacity, the project is expected to help improve supply-chain security and reduce dependence on overseas sources. The funding selection reflects growing efforts in the United States to strengthen domestic rare earth production and processing, which are important for energy, technology and national security needs.

Also, in January 2026, USA Rare Earth entered into a non-binding Letter of Intent (LOI) with the U.S. Department of Commerce and announced collaboration with the U.S. Department of Energy (DOE). The Department of Commerce’s CHIPS Program has provided an LOI entailing $277 million in proposed federal funding and a $1.3 billion senior secured loan under the CHIPS Act, a total of $1.6 billion.

Snapshot of USAR's PeersAmong its major peers, MP Materials Corp. (MP - Free Report) has received federal support to strengthen rare earth processing and magnet manufacturing in the United States. MP Materials has been expanding domestic production capabilities to support industries such as electric vehicles, renewable energy, electronics and defense. These efforts by MP Materials are aimed at reducing dependence on overseas rare earth supply chains and improving supply security.

Energy Fuels Inc. (UUUU - Free Report) has been expanding its rare earth processing efforts as part of a strategy focused on critical minerals. Energy Fuels is working to strengthen domestic and North American supply capabilities for materials used in clean energy, technology and defense industries. These initiatives reflect growing efforts to build a more secure and diversified critical minerals supply chain.

USAR’s Price Performance, Valuation & EstimatesShares of USAR have gained 105.3% in the past six months compared with the industry’s growth of 36%.

Image Source: Zacks Investment Research

From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 85.96X against the industry’s average of 15.68X. USA Rare Earth has a Value Score of F.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for USAR’s 2026 earnings has decreased over the past 60 days.

Image Source: Zacks Investment Research

Live Updates Jun 1, 2026 at 9:03 AM EDT

This morning, analysts at DA Davidson added Nvidia to its best of breed list, noting that the tech giant is firing on all cylinders.

“Nvidia has built a durable competitive advantage anchored in its position as the critical provider of accelerated computing for AI, supported by a full-stack platform that spans GPUs, networking, and software,” said the firm, as quoted by CNBC.

Markets are still hitting higher highs. The S&P 500, for example, is up another 0.16%, or by 12 points. The SPDR S&P 500 ETF (SPY) is up 0.23%, or by $1.77. The Dow is up another 0.28%, or by 135 points. The Nasdaq is up by 0.14%, or by 43 points. Oil is up $2.50 at $89.88, as the war continues. Bitcoin is down by about $1 444.28 at $72,135.

Unfortunately, there’s still a good deal of uncertainty about the Iran war. Most recently, the U.S. said it struck Iranian radar sites as Kuwait reported missile and drone attacks. At the same time, President Trump said he would “make a final determination” shortly, and reiterated that Iran “must agree that they will never have a Nuclear Weapon,” as quoted by CNBC.

In addition, as pointed out by Adam Crisafulli, founder of Vital Knowledge, “Trump clearly doesn’t want to escalate and is looking for an off-ramp. Some type of a pact is very likely, and markets largely assume a sustained cessation of hostilities. An actual announcement will probably trigger a ‘sell the news’ reaction for the overall S&P 500.”

Market Movers: Dell  After exploding on Friday, shares of Dell (NYSE: DELL | DELL Price Prediction) are up another $5.45 in premarket.

Once known primarily as a PC manufacturer, Dell has emerged as one of the biggest beneficiaries of the artificial intelligence boom, thanks to surging demand for its AI infrastructure and server business.

The company’s latest earnings report highlights just how strong that momentum has become.

In the first quarter, Dell reported earnings per share of $4.86, crushing Wall Street expectations by $1.96. Revenue surged 87.5% year over year to $43.8 billion, exceeding analyst forecasts by $8.46 billion. Much of that growth came from the company’s booming AI business. Dell booked $24.4 billion in AI orders during the quarter and generated $16.1 billion in AI server revenue.

“Our record Q1 performance reflects strong in-quarter demand, as well as our pace of innovation across the full stack of PCs, compute, and storage,” said Vice Chairman and Chief Operating Officer Jeff Clarke.

Management’s outlook suggests the growth isn’t slowing anytime soon. Dell raised its fiscal 2027 AI server revenue forecast to $60 billion, underscoring its confidence in continued AI spending across the industry.

Market Movers: Rare Earth Stocks  Analysts at Needham just initiated a buy rating on MP Materials (NYSE: MP) and USA Rare Earth (NASDAQ: USAR). The firm noted, “We believe we are in the early innings of a multi-year investment cycle across the rare earth magnet value chain as governments around the world push to diversify critical supply chains outside of China. Through 2030, the industry is likely to be characterized by a race by Western suppliers to catch Western demand,” as quoted by CNBC.

Analysts at Citi reiterated a buy rating on Apple (NASDAQ: AAPL), noting that it is incrementally positive on iPhone shipments this year. It also sees Apple building on the strong momentum of the iPhone 17 family.

© ESB Professional / Shutterstock.com

June 01, 2026 16:30 ET  | Source: USA Rare Earth, Inc.

STILLWATER, Okla., June 01, 2026 (GLOBE NEWSWIRE) -- On June 2, 2026, William Robert Steele Jr., the Chief Financial Officer of USA Rare Earth, Inc. (the “Company”), will be presenting at the William Blair 46th Annual Growth Stock Conference at 11:20 a.m. Central Time. Following the conference, a replay of the presentation will be made available on the investor relations section of the Company’s website at https://investors.usare.com/.

About USA Rare Earth

USA Rare Earth, Inc. (Nasdaq: USAR) is building a fully integrated rare earth and permanent magnet value chain across the United States, the United Kingdom, France and Brazil. Through its ownership of Less Common Metals (LCM), one of the world’s leading producers of rare earth metals and alloys, its development of magnet manufacturing capacity in Stillwater, Oklahoma, the Pela Ema mine in Brazil (subject to closing the SVG transaction) and the Round Top deposit in Texas, USA Rare Earth operates across the entire value chain from mining to metal-making, alloy production and neodymium magnet manufacturing. USA Rare Earth is establishing a secure, Western-aligned supply of materials essential to the aerospace and defense, semiconductor, data center, physical AI, autonomous systems, mobility, healthcare and industrial sectors.

For more information, visit www.usare.com.

USAR Investor Contact:
J.B. Lowe, CFA
VP, Head of Investor Relations
[email protected]

USAR Media Relations Contact:
Collected Strategies
[email protected]

USA Rare Earth shares USAR rose more than 4% on Tuesday after the company announced plans to build a $1.2 billion magnet manufacturing and refined metals facility in South Carolina.

The project will expand domestic rare earth production capacity as the United States seeks to reduce reliance on Chinese supply chains.

The company said it has selected Cherokee County, South Carolina, as the location for the new operation, which will be built at Bailey Industrial Park in Blacksburg.

At the time of writing, USA Rare Earth stock was up about 4.79% at $30.84.

USA Rare Earth said the new facility will play a key role in its strategy to build a fully integrated domestic rare earth supply chain.

The Blacksburg operation is expected to produce 6,400 metric tons per year of sintered neodymium-iron-boron (NdFeB) rare earth magnets and 5,000 metric tons per year of strip-cast metals and alloys.

Once combined with the company's existing magnet and refined metals operation in Stillwater, Oklahoma, USA Rare Earth expects total domestic production capacity to reach 10,000 metric tons annually for both magnets and heavy rare earth strip-cast metals and alloys.

Engineering work and equipment procurement for the South Carolina site are already underway.

The company said site work is expected to begin in the coming months, with commissioning targeted to start in 2028.

The project is also expected to create approximately 490 high-skill, high-wage jobs in the region.

“Cherokee County is the next critical link in the rare earth and magnet value chain we’re building across the United States, the United Kingdom, Europe, and around the globe,” said Barbara Humpton, Chief Executive Officer at USA Rare Earth.

South Carolina Governor Henry McMaster also welcomed the investment.

"USA Rare Earth's $1.2 billion investment and the creation of approximately 490 new jobs will have a significant impact on Cherokee County,” McMaster said.

According to the company, magnets and refined metals produced at the facility will support a range of industries that increasingly depend on secure supplies of rare earth materials.

These include aerospace, defense, semiconductors, artificial intelligence, medical technology, energy, and advanced manufacturing.

USA Rare Earth added that it has secured a confirmed energy supply from Duke Energy for the facility. 

Rare earth materials are essential components in electric vehicles, wind turbines, oil refining equipment, defense systems, semiconductor manufacturing, and medical imaging technologies.

The company said the new South Carolina operation will complement its broader mine-to-magnet strategy, strengthening domestic manufacturing capabilities across the rare earth value chain.

The investment comes as policymakers push to strengthen domestic rare earth supply chains amid concerns about dependence on China.

The US Department of Defense is set to ban Chinese-origin sintered NdFeB magnets in defense applications beginning in January 2027, increasing demand for domestic production capacity.

China currently controls roughly 90% of global processed rare earth minerals and magnet production, making supply chain diversification a strategic priority for the United States and its allies.

USA Rare Earth is also backed by a $1.6 billion debt-and-equity funding package from the US government to support development of another facility in Texas.

However, the company has faced scrutiny from some lawmakers who have raised concerns about the structure of the funding arrangement and its implications.

With the South Carolina project now moving forward, USA Rare Earth is positioning itself to capitalize on growing demand for domestically produced rare earth magnets and metals as industries and governments seek more secure supply chains.

USA Rare Earth announced definitive agreements with the US Department of Commerce that provide access to up to $1.6 billion in funding under the CHIPS Act to support the development of a domestic rare earth supply chain.

The agreements formalize an earlier announcement that the Trump administration would support a $1.6 billion debt-and-equity funding package for the company.

Despite the funding milestone, shares of USAR declined nearly 5.3% in morning trading.

The company said the funding framework will help accelerate development of its rare earth mining, processing, metal-making, and magnet manufacturing operations across the United States as Washington seeks to reduce dependence on China for critical minerals and rare earth materials.

Under the agreements, USA Rare Earth will gain access to up to $277 million in federal funding and as much as $1.3 billion in senior secured loan capacity through the Commerce Department's CHIPS program.

Disbursements will be tied to the achievement of project milestones, according to the company.

The funding adds to a $1.5 billion private capital raise completed in January.

Combined with previous fundraising efforts, USA Rare Earth said it now has approximately $3.5 billion in committed capital to support its expansion plans.

As part of the agreement with the Commerce Department, the company will issue 16.1 million common shares and 17.6 million warrants to the department.

The agreements come months after Chief Executive Officer Barbara Humpton told Reuters that the transaction was expected to close in April.

A significant portion of the funding will support the development of the company's Round Top heavy rare earth and critical minerals project in Texas.

USA Rare Earth is targeting initial production from the project in 2028 as part of its broader effort to establish a fully integrated domestic supply chain.

The company said the agreements will also support processing and separation operations for materials produced at Round Top, including heavy rare earth element oxides, concentrates, and other critical minerals.

In addition, funding will be used to expand domestic metal-making, alloy production, and strip-casting capabilities.

The company plans to reshore 10,000 tons per year of heavy rare earth metal-making and alloy capacity as it builds out its mine-to-magnet strategy.

The announcement comes as the United States continues efforts to strengthen domestic production of critical minerals and reduce reliance on China, which currently dominates global rare earth processing and magnet manufacturing.

USA Rare Earth earlier announced plans to invest $1.2 billion in a new magnet manufacturing and refined metals facility in South Carolina.

The project is expected to expand domestic production capacity and create hundreds of jobs.

The Commerce Department funding will also support the scaling of neodymium-iron-boron (NdFeB) magnet manufacturing operations in Oklahoma and South Carolina to a combined capacity of 10,000 tons per year.

USA Rare Earth said its objective remains the creation of an integrated US rare earth supply chain spanning mining, processing, metal production, and magnet manufacturing.

The United States faces a huge supply chain vulnerability regarding rare-earth elements. That's because China controls up to 90% of the processing of these rare-earth elements, according to research by The Motley Fool. The federal government has taken an active role in bolstering rare-earth mining and processing and has invested in two companies, MP Materials (MP +0.35%) and USA Rare Earth (USAR +0.00%), to bolster its capabilities.

The two companies are expanding their capabilities for mining and processing rare-earth elements and manufacturing refined magnets, which are critical for defense, aerospace, and technological applications. If you're considering investing in the budding U.S. rare-earth industry, one of these companies stands out as a better investment right now.

Image source: Getty Images.

The U.S. government has a vested interest in MP Materials and USA Rare Earth MP Materials and USA Rare Earth are two companies that have come onto investors' radar after the U.S. government provided massive financial backing and support. Last year, MP Materials entered into a historic agreement with the U.S. Department of Defense (DoD) to help accelerate the build-out of its second domestic magnet facility (the 10X facility) and its mining capabilities.

As part of the agreement, the DoD has agreed to a 10-year purchase agreement for MP Materials' neodymium-praseodymium (NdPr) products at $110 per kilogram, providing the company with a price floor that insulates it from foreign entities that may try to undercut its prices. NdPr is a rare-earth alloy used to manufacture powerful permanent magnets crucial to defense and technology systems.

The U.S. government has also agreed to purchase 100% of the magnets produced at MP's 10X facility for 10 years following the facility's construction. In return, the DoD agreed to purchase $400 million in shares of the rare-earth company and is now its largest shareholder, holding 15% of the shares outstanding.

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In January, USA Rare Earth also reached a $1.6 billion deal with the U.S. Department of Commerce through the CHIPS Act, which will enable the company to build out its own "mine-to-magnet" supply chain. As part of the agreement, USA Rare Earth will issue 16.1 million common shares to the U.S. Department of Commerce and roughly 17.6 million warrants.

MP Materials has this major strategic advantage MP Materials has a huge first-mover advantage over USA Rare Earth. That's because MP owns and operates the Mountain Pass mine in California, the only active, large-scale, rare-earth mining and processing site in North America. This established infrastructure allows the company to hit the ground running and generate revenue quickly as it ramps up its operations.

In the first quarter, MP Materials produced a record 917 metric tons of NdPr and sold 1,006 metric tons, representing year-over-year increases of 63% and 117%, respectively. The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved from negative $2.7 million last year to positive $36.6 million. Meanwhile, its generally accepted accounting principles (GAAP) net loss shrank from $22.7 million to $8 million year over year.

USA Rare Earth is still in its early stages and is spending big on acquisitions to get its mining and processing business up and running. Over the past several months, it has acquired Serra Verde Group for $2.8 billion and Less Common Metals for about $220 million. In addition, the company aims to develop the Round Top deposit in Texas and expand its processing capabilities with its facility in Stillwater, Oklahoma and a newly announced facility in Blacksburg, South Carolina.

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While MP Materials is further ahead, growth-oriented investors may gravitate toward USA Rare Earth for one reason: its Round Top deposit. This deposit is rich in scarce, heavy, rare-earth elements, such as dysprosium and terbium, which are needed to make heat-resistant permanent magnets for electric vehicles, wind turbines, and military defense systems.

Both stocks come with risk, but one stands out as a better buy Investing in MP Materials or USA Rare Earth isn't for the faint of heart. That's because both companies are still early-stage, pre-profit businesses investing heavily in building out mining and processing capabilities. For that reason, conservative investors would likely want to avoid both stocks right now.

That said, if you are intrigued by the rare-earth supply chain build-out in the U.S., MP Materials stands out as the better buy to me right now. The company already has the Mountain Pass mine and processing capabilities, has secured major supply contracts with Apple and General Motors, has a better deal with the government with established price floors, and is already benefiting from ramped-up production.

Key Takeaways USAR commissioned Phase 1a magnet production in Oklahoma, targeting customer shipments in Q2 2026.USAR secured access to up to $1.6B in CHIPS-backed funding and a $14.2M Texas grant.USAR's Round Top acquisition adds full project ownership; Stillwater aims for 1,200 tons by 2027. USA Rare Earth, Inc. (USAR - Free Report) shares have surged 73.5% over the past year, outperforming the industry and the S&P 500, which have returned 41.8% and 26%, respectively. The company is gaining from the launch of its commercial magnet production line and strategic acquisitions aimed at strengthening its rare earth operations. It is also benefiting from government-backed funding and expansion initiatives that support the development of a domestic rare earth supply chain.

In contrast, the company’s peers like BHP Group Limited (BHP - Free Report) and MP Materials (MP - Free Report) have gained 64.5% and 111.5%, respectively, over the same time frame.

USAR Outperforms Industry & S&P 500
Image Source: Zacks Investment Research

Closing at $22.21 in the last trading session, the stock is trading below its 52-week high of $43.98 but higher than its 52-week low of $9.32. The stock is trading above its 200-day moving average but slightly below its 50-day moving average, indicating that the long-term trend remains positive despite some near-term weakness.

USAR Stock’s 50-Day & 200-Day Moving Averages
Image Source: Zacks Investment Research

Let’s take a look at USAR’s fundamentals to better analyze how to play the stock.

Growth Drivers for USAR StockThe successful commissioning of Phase 1a of USAR’s commercial magnet production line at its Stillwater, OK, facility marks an important step in its growth strategy and allows it to begin supplying sintered NdFeB permanent magnets to customers in the second quarter of 2026.

The commissioning highlights the company’s capability to operate a complex rare earth magnet manufacturing process at a commercial scale. At its Stillwater facility, USAR transforms rare earth materials into high-performance NdFeB permanent magnets through a series of production steps, serving end markets such as defense, aerospace and automotive.

Phase 1a is expected to achieve an annual production run rate of 600 metric tons by the end of 2026, while the planned Phase 1b expansion is projected to double total capacity to 1,200 metric tons annually by the first quarter of 2027. Once fully operational, Stillwater is expected to be among the first large-scale NdFeB magnet manufacturing facilities in the United States, supporting a more resilient domestic rare earth supply chain.

USAR has strengthened its growth strategy through a combination of financing and acquisitions. In June 2026, the company secured access to up to $1.6 billion in government-backed funding under the CHIPS Program from the U.S. Department of Commerce. The package includes up to $277 million in federal funding and up to $1.3 billion in loan support as the company advances key development milestones.

In May 2026, USA Rare Earth secured a $14.2 million grant from the Texas Semiconductor Innovation Fund to boost the development of its Round Top Mountain rare earth project in West Texas, aimed at supporting domestic supply chains for critical minerals used in defense, semiconductors, AI and advanced technologies.

In January 2026, the company completed a $1.5 billion PIPE financing to fund upgrades at the Stillwater facility, expand magnet finishing operations and complete Line 1b, increasing planned NdFeB magnet production capacity to roughly 1,200 metric tons.

Also, in March 2026, USAR agreed to acquire Texas Mineral Resources Corp. in an all-stock transaction valued at approximately $73 million, giving it full ownership of the Round Top Project. The company expects commercial production at Round Top to begin in 2028, with a long-term goal of processing nearly 40,000 metric tons of rare earth and critical mineral feedstock per day by 2030. The November 2025 acquisition of Less Common Metals is expected to provide critical metal and alloy feedstock for the Stillwater plant.

Despite these growth initiatives, USAR remains in the early stages of commercialization and is continuing to incur losses as it scales its business. While the acquisition of Less Common Metals has started contributing to revenues, profitability remains under pressure from higher operating expenses associated with expansion efforts, acquisitions and workforce additions.

In the first quarter of 2026, selling, general and administrative expenses increased significantly to $21.2 million from $7 million in the prior-year period, driven by higher legal, consulting and personnel-related costs. Research and development expenses also rose to $14.2 million from $1.7 million a year ago, reflecting increased investment in product development and growth initiatives.

USAR operates in the mineral exploration and mining markets, which include major industry players like BHP Group and MP Materials.

USAR’s Estimate RevisionsThe Zacks Consensus Estimate for USAR’s bottom line for 2026 has decreased in the past 60 days.

Image Source: Zacks Investment Research

ValuationFrom a valuation standpoint, USA Rare Earth is trading at a forward price-to-earnings ratio of a negative 65.94X against the industry average of 14.73X. In comparison, BHP Group and MP Materials are trading at 15.46X and 156.66X, respectively.

Image Source: Zacks Investment Research

Final TakeUSAR is benefiting from the commissioning of its commercial magnet production line, strategic acquisitions and investments aimed at establishing a fully integrated domestic rare earth supply chain. The acquisitions of Less Common Metals and Texas Mineral Resources are expected to strengthen its long-term growth prospects.

However, the company remains in the early stages of commercialization and continues to report losses as it invests heavily in expansion and growth initiatives. Rising operating and research and development expenses are likely to weigh on near-term profitability, making the stock less attractive at present. Holding on to this Zacks Rank #4 (Sell) company at present does not seem prudent.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.