USA Rare Earth breaks ground at $1.2B rare earth magnet manufacturing facility in South Carolina

USA Rare Earth, a company listed on the Nasdaq, has unveiled plans for a $1.2 billion rare earth magnet manufacturing facility in Blacksburg, South Carolina. The state-of-the-art 800,000-square-foot facility, occupying a 124-acre site in Cherokee County, is a significant step towards establishing an integrated rare earth supply chain for the United States and its allies.

The construction of the plant is expected to generate approximately 490 manufacturing jobs in the region. USA Rare Earth determined Blacksburg as the ideal location after a thorough review of 275 potential sites nationwide, appreciating the state's skilled workforce in advanced manufacturing, dependable power supply, efficient transportation infrastructure, accessibility to customers and suppliers, and robust backing from state and local authorities.

CEO Barbara Humpton highlighted the significance of the ground-breaking ceremony, stating that it transitions the company's vision from a blueprint into tangible infrastructure. The ambitious project also includes a $250,000 contribution to Spartanburg Community College to establish a SPARK Center in Cherokee County, aimed at fostering a stronger connection between education, workforce development, and economic growth.

South Carolina Governor Henry McMaster expressed his delight over USA Rare Earth's decision to establish its operations in Blacksburg, emphasizing the state's rich tradition of producing vital items relied upon globally. The Blacksburg facility will complement USA Rare Earth's existing magnet manufacturing operations in Stillwater, Oklahoma, where the company recently inaugurated its first commercial production line.

Together, the Blacksburg site and the anticipated expansion at Stillwater are projected to generate a combined capacity of 10,000 metric tons per annum for the production of neodymium-iron-boron (NdFeB) magnets. Moreover, USA Rare Earth has recently acquired a minority stake in France’s Carester, an arrangement intended to fund the expansion of a processing plant set to commence operations later this year.

This strategic move is a part of a broader US and European effort to develop their own rare earth and magnet capacity, reducing reliance on China, which currently holds approximately 90% of the global processed output of these crucial minerals used in energy transition, electronics, and defense sectors. When fully operational, the South Carolina facility is expected to produce 6,400 metric tons annually of sintered NdFeB permanent magnets and 5,000 tpa of strip-cast metal and alloy, with commissioning anticipated to commence in 2028.