USA Rare Earth Secures $1.6B LOI, Raises $1.5B Before Q1 Magnet Commissioning
USA Rare Earth will commission its Stillwater magnet facility in Q1 2026 after securing a $1.6B non-binding CHIPS Act LOI and raising $1.5B in private capital. Acquisition of UK-based LCM and the Round Top deposit’s high heavy rare earth content support its 2030 production targets.
1. Stillwater Magnet Facility Commissioning
USA Rare Earth’s Stillwater, Oklahoma, sintered neodymium magnet facility is on schedule to complete commissioning in the first quarter of 2026, marking the company’s entry into commercial magnet production and closing a critical link in its integrated mine-to-magnet value chain.
2. CHIPS Act LOI and Private Capital Raise
The company secured a non-binding Letter of Intent under the CHIPS Act entailing $277 million in proposed funding and a $1.3 billion senior secured loan, and raised $1.5 billion in private investment, with proceeds earmarked for facility construction, working capital and acceleration of its integrated platform.
3. LCM Acquisition and Strategic Partnerships
USA Rare Earth acquired LCM, the only proven ex-China producer of light and heavy rare earth metals and alloys at scale, and established partnerships with Solvay and Arnold Magnetic Technologies to supply specialized metals for precision magnet manufacturing in Europe and North America.
4. 2030 Production Targets and Heavy Rare Earth Resources
Management’s 2030 production targets are underpinned by the high heavy rare earth content of the Round Top deposit and the expanded processing capacity from LCM, positioning the company to meet long-term demand for specialized rare earth magnets in EV, defense and high-tech markets.