USA Rare Earth (Nasdaq: USAR) this week broke ground on its new rare earth metal and magnet manufacturing facility in Blacksburg, South Carolina, marking a milestone in its plan to build an integrated rare earth supply chain for the US and its allies.
Located on a 124-acre site in Bailey Industrial Park in Cherokee County, the 800,000-square-foot facility represents an approximately $1.2 billion investment and is expected to create roughly 490 manufacturing jobs upstate.
USA Rare Earth said it selected Blacksburg following a comprehensive evaluation of nearly 275 potential sites across the country, adding that South Carolina stood out for its skilled advanced manufacturing workforce, reliable power, transportation infrastructure, proximity to customers and suppliers, and strong support from state and local partners.
“Breaking ground in Blacksburg is an important moment because it moves our vision from plans on paper to infrastructure taking shape,” CEO Barbara Humpton said in a news release.
“We’re building the capabilities America needs to make critical rare earth materials and magnets at home, while making a long-term investment in the people and communities that will help us do it.”
Investing in education
USA Rare Earth also announced a $250,000 contribution to Spartanburg Community College to support its new SPARK Center in Cherokee County. The new center will connect education, workforce development and economic development, providing resources to support businesses.
“South Carolina’s greatest strength has always been our people and their ability to build things the world depends on,” South Carolina Governor Henry McMaster said. “USA Rare Earth’s decision to put down roots in Blacksburg is another tremendous vote of confidence in our workforce and in the manufacturing future of our state. Today, we celebrate the start of a project that will create new opportunities for families across Cherokee County and the Upstate while helping America rebuild a critical industry here at home.”
The Blacksburg facility will complement USA Rare Earth’s existing magnet manufacturing operation in Stillwater, Oklahoma, where it commissioned its first commercial production line earlier this year.
Together, Blacksburg and the planned expansion at Stillwater are expected to provide USA Rare Earth with 10,000 tpa of domestic neodymium-iron-boron (NdFeB) magnet manufacturing capacity.
USAR also finalized a deal in July to buy a minority stake in France’s Carester that will provide funds for expansion of a processing plant due to open later this year.
The move is part of a scramble by the US and Europe to build their own rare earths and magnet output to cut dependence on China, which controls about 90% of global processed output of the minerals vital for the energy transition, electronics and defence.
Once online, the South Carolina facility is targeting production capacity of 6,400 metric tons per annum of sintered NdFeB permanent magnets and 5,000 tpa of strip-cast metal and alloy, with commissioning targeted to begin in 2028.
