USA Rare Earth Races to Become Fully Integrated Rare Earth Producer

As losses mount, the company's operational progress on its mine-to-magnet strategy is crucial for its long-term potential.

Apr. 1, 2026 at 6:54pm

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USA Rare Earth, a small company working to reduce U.S. reliance on China for rare earth elements (REEs), is making progress on its ambitious plan to build a fully integrated mine-to-magnet production platform. Despite rising losses, the company is accelerating its timeline to commission its Round Top deposit in Texas and acquire a key manufacturing facility to support future magnet production.

Why it matters

Rare earth elements and permanent magnets made from them are critical for a wide range of technologies, from consumer electronics to electric vehicles and defense systems. However, China currently dominates the global REE supply chain, controlling around 60% of mines, 90% of processing, and 94% of permanent magnet production. The U.S. government has recognized the strategic importance of diversifying this supply chain, providing significant support to companies like USA Rare Earth.

The details

USA Rare Earth is now targeting late 2028 for the commissioning and commercial production at its Round Top deposit in Texas, two years ahead of its previous schedule. The company also acquired Less Common Metals (LCM) in November 2025, which will support important manufacturing steps for eventual magnet production. Additionally, USA Rare Earth has commissioned its Stillwater magnet production site in Oklahoma, with plans to begin fulfilling customer orders for permanent magnets in Q2 2026. On the funding front, the company has generated $1.5 billion from a private stock offering and expects to sign a $1.6 billion agreement with the Department of Commerce, though most of that would come through a loan.

  • USA Rare Earth acquired Less Common Metals in November 2025.
  • USA Rare Earth is targeting late 2028 for the commissioning and commercial production at its Round Top deposit in Texas.
  • USA Rare Earth expects to begin fulfilling customer orders for permanent magnets from its Stillwater site in Q2 2026.

The players

USA Rare Earth

A small company working to reduce U.S. reliance on China for rare earth elements (REEs) by building a fully integrated mine-to-magnet production platform.

MP Materials

The only U.S. firm currently producing and processing REEs at scale, as well as the only U.S. company making permanent magnets.

U.S. Department of Defense

Invested $400 million in MP Materials and guaranteed the company a $110/kg price floor on Neodymium-Praseodymium (NdPr) oxide, showing the government's extensive support for domestic REE production.

U.S. Department of Commerce

Expected to sign a $1.6 billion agreement with USA Rare Earth, though most of the funding would come through a loan.

Less Common Metals (LCM)

A company acquired by USA Rare Earth in November 2025 to support important manufacturing steps for eventual magnet production.

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What’s next

USA Rare Earth expects to sign an agreement with the Department of Commerce in April to gain access to an additional $1.6 billion in funding, which would help the company reach the estimated $4.1 billion needed to build out its mine-to-magnet platform.

The takeaway

USA Rare Earth's progress on its ambitious mine-to-magnet strategy, including accelerating its timeline, acquiring key manufacturing capabilities, and securing significant funding, is crucial for the company's long-term potential, despite its current financial losses. The strategic importance of diversifying the U.S. rare earth supply chain away from China's dominance remains a key driver for the company's success.