USA Rare Earth to Invest $1.2B in South Carolina Magnet Plant

Blacksburg, SC – USA Rare Earth (Nasdaq: USAR) has announced a $1.2 billion investment to build a major rare earth magnet manufacturing and refined metals facility in Cherokee County’s Bailey Industrial Park in Blacksburg, South Carolina. The project marks a significant milestone in the company’s effort to create a fully domestic “mine-to-magnet” supply chain and reduce America’s heavy reliance on China for critical materials essential to electric vehicles, wind turbines, defense systems, semiconductors, and data centers.

The new Blacksburg plant will target an annual production capacity of 6,400 tonnes per annum (tpa) of sintered neodymium-iron-boron (NdFeB) permanent magnets and 5,000 tpa of strip-cast metal and alloy. When combined with planned expansions at the company’s Stillwater, Oklahoma facility (which began commercial production earlier this year), USA Rare Earth expects to achieve 10,000 tpa of NdFeB magnets and 10,000 tpa of heavy rare earth strip-cast, metal, and alloy domestically. Site preparation is set to begin in the coming months, with full commissioning targeted for 2028. The project is expected to create approximately 490 high-skill jobs.

This facility forms the latest link in USA Rare Earth’s vertically integrated strategy, anchored by the Round Top heavy rare earth project in Sierra Blanca, Texas. The company is also advancing international assets, including a planned acquisition of Brazil’s Serra Verde mine (potentially supplying up to half of global ex-China heavy rare earth output) and facilities in the UK and France.

CEO Barbara Humpton emphasized the strategic importance: “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. South Carolina offered the workforce, the infrastructure and the partners we needed to move quickly. With this investment, we’re bringing home the advanced manufacturing capabilities that America and its allies depend on, from the factory floor to the front lines.”

Tackling China Dependency: What Percentage of U.S. Magnet Needs Can This Help Solve?

China currently dominates ~94% of global sintered NdFeB magnet production (the type used in high-performance motors and generators), with the U.S. producing less than 1% domestically. Global NdFeB magnet demand stood at roughly 184,000 tonnes in 2022 and is projected to grow to over 300,000 tonnes by the early 2030s, driven primarily by electric vehicles and renewable energy.

The U.S. remains nearly 100% import-reliant for finished rare earth magnets, with the vast majority coming from China. USA Rare Earth’s combined domestic capacity of 10,000 tpa of NdFeB magnets—alongside similar-scale plans from MP Materials and smaller facilities from companies like e-VAC Magnetics and Noveon—will not eliminate dependency overnight. However, it represents a major step forward, potentially supplying 25-40% or more of near-term U.S. market needs in strategic sectors once fully ramped (depending on exact demand growth from EVs, wind, and defense). Together with peer projects, U.S. domestic magnet production could reach 20,000–30,000 tpa in the coming years, meaningfully diversifying supply and mitigating national security and economic risks from Chinese export restrictions or price volatility.

Other U.S. Rare Earth and Critical Minerals Companies: Current Landscape and Ranking

The U.S. rare earth sector is rapidly expanding beyond a single-player industry. Here’s a snapshot of key players in mining, refining, and magnet production (ranked approximately by current production scale/integration as of mid-2026):

MP Materials (NYSE: MP) – The clear U.S. leader. Operates the Mountain Pass mine in California (America’s only active rare earth mine) and is building full vertical integration to magnet manufacturing in Fort Worth, Texas. Targeting 10,000 tpa of NdFeB magnets. Strong DoD partnerships and the most advanced domestic supply chain.

USA Rare Earth (Nasdaq: USAR) – Heavy rare earth specialist with the Round Top deposit. Advancing the Blacksburg and Stillwater magnet plants, plus upstream mining and international assets. Strong government backing, including up to $1.58 billion in CHIPS Program support.

Energy Fuels (NYSE American: UUUU) – Leading rare earth processor at its White Mesa Mill in Utah. Produces high-purity NdPr oxide and is expanding into heavy rare earths and magnet precursors. Also a major U.S. uranium producer with a growing critical minerals focus.

Other notable players include Noveon Magnetics (recycled magnets, San Marcos, TX), e-VAC Magnetics (new Sumter, SC plant targeting 2,000 tpa with DoD support), and emerging efforts from companies like HyProMag USA. Australia’s Lynas Rare Earths maintains a significant U.S. processing footprint but is not a domestic miner.

What This Means for Consumers and Investors

For consumers: Lower supply-chain risk translates to more stable prices and availability for EVs, wind turbines, consumer electronics, and defense equipment. Reduced exposure to Chinese export controls or geopolitical shocks could prevent the kind of shortages and price spikes seen in recent years, supporting the clean energy transition and national security without sacrificing cost or performance.

For investors: This announcement underscores growing momentum in the U.S. critical minerals sector, backed by substantial federal incentives (grants, loans, price floors, and offtake agreements). USA Rare Earth, MP Materials, and Energy Fuels stand to benefit from policy tailwinds and rising demand. However, risks remain—acquisition scrutiny, technology disputes, permitting hurdles, and commodity price volatility are part of the landscape. Long-term, companies that achieve true vertical integration from mine to magnet are best positioned for outsized returns as the West reshapes its supply chains.

The Blacksburg project is more than a factory—it’s a strategic bet on American manufacturing resilience. With commissioning slated for 2028, the race to onshore rare earth magnets is accelerating, and USA Rare Earth is helping lead the charge.