USA Rare Earth Accelerates Mine-to-Magnet Strategy with the Transformative Acquisition of Less Common Metals (LCM)
News Summary
On September 29, 2025, USA Rare Earth (USAR) announced it has entered into a definitive agreement to acquire Less Common Metals (LCM), the world's most established ex-China rare earth metal and alloy producer. The acquisition, valued at $100 million in cash and 6.74 million shares of USAR common stock, is set to significantly accelerate USAR's mine-to-magnet strategy, establishing an end-to-end rare earth supply chain. USAR Chairman Michael Blitzer highlighted LCM's unique position as the only proven ex-China producer of both light and heavy rare earth permanent magnet metals and alloys at scale from its 67,000 square foot facility in the UK. This transaction positions USAR as the leading scaled rare earth metal and alloy manufacturer outside of China, with leadership in Samarium, Samarium Cobalt, and Neodymium Praseodymium metals and alloys. Concurrently, USAR received a $125 million common equity investment from an existing shareholder at $15.00 per share, providing capital to expedite growth plans, including the buildout of its 5,000-ton magnet production facility in Oklahoma and expanding LCM's capabilities in the UK and Europe to support the broader ex-China industry.
Background
Rare earth elements are critical components in modern high-tech industries such as electric vehicles, wind turbines, defense technologies, and consumer electronics. China has long dominated the global rare earth supply chain, especially in the midstream processing of metals and alloys, raising concerns in Western nations about supply chain security and strategic autonomy. During President Donald J. Trump's administration (2025), the U.S. government has consistently prioritized revitalizing domestic manufacturing and securing critical mineral supply chains independently from potential geopolitical adversaries as a key national economic and security strategy. Against this backdrop, companies like USA Rare Earth are striving to establish complete "mine-to-magnet" rare earth value chains within the U.S. and allied nations, integrating mining, processing, and magnet production capabilities to reduce reliance on single sources.
In-Depth AI Insights
What are the strategic implications of this acquisition for the global rare earth supply chain, and how does it advance Western independence from China? - USAR's acquisition of LCM is a landmark step for the West in building an independent rare earth supply chain, bringing the only proven scaled rare earth metal and alloy producer outside of China under the control of a U.S. company. - This directly addresses the critical midstream bottleneck of rare earth processing outside of China. It secures essential NdPr metals and strip cast alloys for USAR's Oklahoma magnet facility and supports industrial and defense applications in Europe. - Despite its significance, challenges remain for the West in terms of raw rare earth mining and full refining capacity. Matching China's vast scale and efficiency will still require substantial investment and time.