USA Rare Earth, Inc. (Nasdaq: USAR) commissioned its commercial sintered NdFeB permanent magnet production line in Stillwater, Oklahoma in late March 2026, making it the first US company to reach this milestone in a fully integrated domestic rare earth and magnet supply chain. First customer orders are expected to ship in Q2 2026.
USA Rare Earth — Company Overview
Founded and headquartered in Stillwater, Oklahoma, USA Rare Earth is building a vertically integrated supply chain spanning mining, processing, metal and alloy production, and magnet manufacturing across the United States, United Kingdom, and Europe. CEO Barbara Humpton leads a company that listed on Nasdaq as USAR following its 2024 transition from development-stage explorer to active manufacturer.
The company’s stated strategic objective is to secure domestic US access to 12 of the US government’s top 30 most essential critical minerals. No commercial operating revenue has been generated to date; first magnet revenues are targeted for Q2 2026 with broader revenue ramp through 2027.
Stillwater, Oklahoma — Magnet Manufacturing
The 310,000 sq ft Stillwater facility is the operational centrepiece of USA Rare Earth’s near-term business. The Phase 1a production line, commissioned in late March 2026, is targeting a 600 tpa run rate by end of Q4 2026. Phase 1b, which adds a second production line, is scheduled to bring total capacity to 1,200 tpa by Q1 2027. Full facility nameplate capacity is approximately 5,000 tpa of sintered NdFeB magnets.
End markets for Stillwater production include aerospace and defence, semiconductors, electric vehicles, wind turbines, robotics, data centres, and healthcare equipment. The facility employs more than 100 workers. The Stillwater site is subject to a Tax Increment Financing (TIF) agreement with the City of Stillwater ($7 million city investment) and $1.2 million in state subsidies, both of which include job creation requirements; compliance status has not been publicly confirmed as of April 2026.
Sintered NdFeB magnets are the primary commercial application for dysprosium and terbium, two heavy rare earth elements critical to high-temperature magnet performance and central to EV motor and wind turbine supply chains.
Round Top, Texas — The Mining Asset
The Round Top deposit in West Texas hosts 15 of the 17 rare earth elements, including all heavy REEs, alongside critical minerals including gallium, hafnium, zirconium, beryllium, and lithium. The deposit is hosted in fluorite and processed via a heap leach method: crush, heap, leach, solvent extraction — a lower-capital approach compared with conventional hard-rock processing.
On March 5, 2026, USAR acquired the remaining 18.6% minority stake in Round Top from Texas Mineral Resources Corp. (OTCQB: TMRC) for $73 million, giving it 100% ownership of the project. The company is targeting 40,000 tpd feedstock extraction by 2030, with commercial production accelerated to a late 2028 target from an earlier 2030 projection. An Accelerated Mining Plan is expected in H2 2026. An additional 9,345 acres surrounding the 950-acre core project have been leased to support longer-term development.
Round Top remains pre-revenue and pre-production. Commercial production not commencing until late 2028 is a key timeline risk for investors modelling near-term earnings.
Less Common Metals and the European Footprint
In November 2025, USA Rare Earth acquired Less Common Metals (LCM) for $100 million cash plus 6.74 million USAR shares. LCM, based in the UK, is one of the world’s leading producers of rare earth metals and alloys, with cast and strip-cast alloy capabilities that complement the Stillwater magnet line. The acquisition gives USAR operational presence in UK and European supply chains ahead of regulatory pressure from the EU Critical Raw Materials Act.
LCM holds supply agreements with Solvay S.A. (supplying rare earth metals to Solvay’s Permag magnet materials division) and Arnold Magnetic Technologies Corp. (a subsidiary of Compass Diversified), underpinning near-term revenue visibility from the European operation.
USA Rare Earth Funding and Government Partnership
USAR has secured or is pursuing more than $3 billion in total potential funding. On January 26, 2026, the US Department of Commerce CHIPS Program issued a Letter of Intent covering $277 million in direct funding and a $1.3 billion senior secured loan. The LOI is non-binding and subject to further due diligence and milestone achievement through 2028; clawback provisions apply if milestones are missed by more than two years. As part of the arrangement, the US government is acquiring a 10% equity stake in USAR (8–16% range) via 16.1 million shares.
A $1.5 billion private PIPE closed on January 28, 2026, two days after the CHIPS LOI. Cash reserves at year-end 2025 exceeded $350 million. Preliminary 2025 operating losses are estimated at $56–62 million; 2025 capital expenditure is estimated at $37–43 million. Analyst forecasts model approximately $50 million in revenue for 2026, rising to $281 million in 2027 as magnet production scales.
The Department of Energy’s National Energy Technology Laboratory (NETL) has also issued an LOI for digital twin collaboration on heavy REE separation process development at USAR’s Wheat Ridge, Colorado facility. The geopolitical context driving this level of government engagement — China’s tightening export controls on heavy rare earths — is a structural tailwind for USAR’s positioning. For detail on critical minerals at risk, see our coverage of China’s export control mineral list.
USA Rare Earth in the Global REE Market
USAR describes itself as the only US company pursuing a fully integrated mine-to-magnet supply chain on domestic soil. The comparison with MP Materials (NYSE: MP) is instructive: MP operates Mountain Pass, the only active rare earth mine in the US, and holds a Department of Defense purchase commitment at cost-plus with a $140 million minimum EBITDA guarantee — a de-risked government revenue structure that USAR does not yet have. Lynas Rare Earths (ASX: LYC) dominates ex-China processing but does not manufacture finished magnets, leaving that part of the value chain open.
The principal risks for USAR at this stage are execution-related: the CHIPS LOI is non-binding; Round Top commercial production is four years out; and the company has no operating revenue history. The US government equity stake is a meaningful signal of long-term alignment but does not substitute for milestone delivery. Investors should track the H2 2026 Accelerated Mining Plan and Q2 2026 first magnet shipments as the near-term proof points.
Further data on heavy rare earth pricing — directly relevant to USAR’s magnet margin assumptions — is available on our dysprosium price tracker.
Company Snapshot
| Founded | 2020 |
|---|---|
| Headquarters | Stillwater, Oklahoma, USA |
| Listing | Nasdaq: USAR |
| CEO | Barbara Humpton |
| Key elements | Neodymium, praseodymium, dysprosium, terbium, gallium, hafnium, lithium |
| Flagship project | Round Top, West Texas (100% owned from March 2026) |
| Magnet capacity target | 600 tpa (Q4 2026) → 1,200 tpa (Q1 2027) → ~5,000 tpa (full) |
| Total funding (potential) | $3bn+ ($1.6bn CHIPS LOI + $1.5bn PIPE) |
| US government stake | ~10% equity (8–16% range) |
| Subsidiaries | Less Common Metals (UK, acquired Nov 2025) |
This article is for informational purposes only and does not constitute investment advice. Prices and milestones are subject to change without notice. The CHIPS Program LOI is non-binding and subject to due diligence and milestone conditions.
What does USA Rare Earth produce?
USA Rare Earth manufactures sintered neodymium-iron-boron (NdFeB) permanent magnets at its Stillwater, Oklahoma facility, commissioned in late March 2026. Through its Less Common Metals subsidiary in the UK, it also produces rare earth metals and alloys. The company is developing Round Top in West Texas as a future source of 15 rare earth elements including all heavy REEs.
Where are USA Rare Earth’s main operations?
USA Rare Earth operates across four locations: Stillwater, Oklahoma (magnet manufacturing); Round Top, West Texas (mining project, targeting commercial production late 2028); Wheat Ridge, Colorado (heavy REE separation R&D); and Less Common Metals in the UK and Europe (metals and alloys production, acquired November 2025).
How much government funding has USA Rare Earth received?
The US Department of Commerce CHIPS Program issued a non-binding Letter of Intent in January 2026 covering $277 million in direct funding and a $1.3 billion senior secured loan. The US government is also acquiring a 10% equity stake in USAR. A separate $1.5 billion private PIPE closed in January 2026. The LOI is subject to due diligence and milestone delivery through 2028.
When will USA Rare Earth begin commercial rare earth mining?
Commercial production at the Round Top project in West Texas is targeted for late 2028, accelerated from a prior 2030 projection. An Accelerated Mining Plan is expected in H2 2026. The company completed its 100% acquisition of Round Top via the $73 million TMRC buyout in March 2026.
How does USA Rare Earth compare to MP Materials?
Both companies are building US domestic rare earth supply chains with government support, but their structures differ significantly. MP Materials operates the only active rare earth mine in the US (Mountain Pass) and holds a DoD cost-plus purchase commitment with a $140 million minimum EBITDA guarantee — a more de-risked revenue model. USA Rare Earth is further up the value chain (magnets) but is pre-revenue and dependent on milestone delivery to access its CHIPS LOI funding. Round Top’s commercial production is four years away; MP Materials is already generating revenue.
