USA Rare Earth, Inc. (Nasdaq: USAR)
Building a New Era of Rare Earth Magnet Manufacturing

Rare earth magnets have always been the cornerstone of the world’s most advanced technologies.

Yet for decades, this critical supply chain has relied precariously on a single country – China. China produces the majority of the world’s rare earth magnets and controls much of the global supply of raw materials, processing, and finished components that are critical to the entire supply chain. This dependency has created one of the most fragile supply chains in the industrial world, where the actions of one country can send ripples through production schedules and pricing models from Detroit to Düsseldorf.

USA Rare Earth is building a vertically integrated supply chain that will eliminate single points of failure in the global supply of rare earths and take them off the geopolitical leverage game board. We aim to serve as a catalyst for industrial self-reliance and a partner of choice across the value chain.

“USARE’s specialized production capabilities are able to serve an array of customers across industries including advanced manufacturing, aerospace, and clean-energy technologies. Our focus is to provide the supply security and resilience that our customers need to move forward with confidence,” says Ron Fogarty, VP of Magnet Sales.

The Power of Vertical Integration

A key element of USARE’s differentiation lies in its vertically integrated structure. Through our magnet manufacturing facility in Oklahoma, our UK-based metal-making and strip-casting subsidiary, our processing lab in Colorado, and North America’s largest deposit of heavy rare earths in Round Top, Texas, we’re able to deliver a secure, US-controlled and fully integrated supply of rare earth materials and magnets, ensuring customers receive high-performance, ethically produced components made in the US according to their needs. This reduces dependency on third-party suppliers and strengthens cost stability and quality control.

USARE’s model is deliberate and serves as a competitive advantage in a global environment where raw material prices can fluctuate greatly. It allows USARE to accelerate decision making, maintain predictable pricing, mitigate external shocks, and deliver consistent performance over time.

By embedding production in countries with robust environmental oversight and labor laws, the company ensures compliance and exemplifies responsible sourcing in the critical materials sector. Every process, from extraction to final assembly, is documented and traceable, offering clients complete visibility into how and where their products are made.

Without bureaucratic or geographic fragmentation, projects will move quickly from prototype to validation and production. The result is a nimble organization capable of responding to technological advances and market demands in real time.

The Process Behind the Magnet

USARE’s Innovations Lab in Stillwater, Oklahoma, commissioned in early 2025, forms the heart of our technical operations. Engineers and material scientists with over 40 years of combined magnet experience work collaboratively to design and test products that will eventually enter the market.

At the helm is Robert Fredette, Director of Magnet Operations. A veteran of the magnet industry since the 1980s, his decades of expertise provide the foundation for USARE’s engineering standards and culture of precision.

The lab functions as the company’s proving ground for new ideas. Teams translate client requirements into tangible products, iterate on designs, and validate performance across various industrial conditions. This iterative, collaborative model ensures that every magnet meets strict performance metrics before entering full-scale production.

At our Midstream R&D Lab located in Wheat Ridge, Colorado, the team is advancing proprietary technologies for rare earth extraction, purification, and recycling. This end-to-end technical integration distinguishes USARE from our peers, allowing us to deliver value at every stage; from mining and processing to recycling rare earth materials.

Expanding a Trans-Atlantic Network

Our recent acquisition of Less Common Metals (LCM) in the UK has significantly strengthened USARE’s technical capabilities and production infrastructure, bringing in over 30 years of expertise in metal-and-alloy making and strip casting. Together with USARE’s existing operations, LCM forms part of a trans-Atlantic network designed to serve allied economies committed to responsible manufacturing.

Each USARE site contributes a unique layer of expertise in materials processing, magnet design, or industrial application, creating a collaborative ecosystem that balances innovation with stability. The result is a network built to withstand geopolitical shifts and market volatility, while maintaining consistent output and quality assurance.

From Dependence to Domestic Strength

USARE is ramping up to begin commissioning in Q1 2026, supported by an aggressive development timeline that places it ahead of other emerging competitors. Our first large-scale manufacturing site, located in Oklahoma, will begin with a production capacity of 600 metric tons of magnets per year, with expansion plans already set through 2029.

This staged expansion will steadily build toward full-scale output, ensuring that demand from key sectors, particularly electric vehicles, renewable energy, and aerospace, can be met with a domestic, ethically sourced supply.

USARE is engaged in extensive prototyping collaborations with customers, designing magnets tailored to exact specifications and performance criteria. These aren’t off-the-shelf products. Each magnet is engineered from the ground up to meet the unique requirements of its application, from power density to temperature resistance.

Clients receive prototype samples for independent testing to verify performance and durability against their internal standards before mass production begins. This process establishes confidence and technical alignment; two things global manufacturers often lose when sourcing from opaque supply chains.

The Road Ahead

The next few years will be pivotal for USARE. As we transition from prototyping to production, our success will symbolize more than industrial progress; it will mark a return to US sovereignty in one of the most strategic and fragile supply chains in modern history.

By delivering ethically produced, technically precise magnets that are built entirely independent of China, USA Rare Earth will serve as a cornerstone of a new, self-reliant US industrial age. Our work demonstrates that high performance and high principles can coexist and that industrial independence doesn’t have to come at the cost of environmental or ethical integrity.

As industries worldwide prepare for a future powered by clean energy and intelligent systems, USARE is ensuring that the magnets at the heart of those systems are made responsibly, domestically, and with unwavering reliability.