USA Rare Earth Bolsters Supply Chain Independence Through Strategic LCM Integration

USA Rare Earth Inc. (USAR) has revealed a significant strategic collaboration through its newly acquired subsidiary Less Common Metals (LCM), which secured a supply agreement with Solvay and Arnold Magnetic Technologies Corporation. This deal represents a pivotal step in reducing dependence on external sources and reinforcing North American and European rare earth ecosystems.

Securing Critical Supply Channels

The collaboration leverages LCM’s specialized capabilities in metal and alloy production to deliver a reliable, non-China alternative for rare-earth materials used in permanent magnet manufacturing. As the only established, large-scale producer of both light and heavy rare earth permanent magnet metals and alloys outside China, LCM addresses a critical gap in the global supply chain. This partnership underscores the strategic importance of cultivating robust domestic and allied sources for materials essential to advanced manufacturing sectors.

USA Rare Earth completed its acquisition of LCM in November 2025. The U.K.-based manufacturer brings proven expertise in specialized rare earth metals and cast/strip cast alloy production, positioning itself as a cornerstone supplier for the growing magnet sector.

Accelerating Vertical Integration

The acquisition aligns with USAR’s comprehensive mine-to-magnet strategy, establishing a fully integrated rare earth supply chain from extraction through finished goods. LCM will supply critical alloy feedstock to USAR’s Oklahoma magnet manufacturing facility, anticipated to commence operations in the first quarter of 2026. This vertical integration model reduces supply vulnerabilities and strengthens competitive positioning for U.S.-based manufacturers requiring secure rare earth access.

Market Performance Reflects Strategic Positioning

Over the past year, USAR shares have delivered a 26.2% return, outpacing the broader industry average of 21.8%. This outperformance reflects investor confidence in the company’s strategic execution and the broader secular demand for rare earth materials driven by electrification, renewable energy, and advanced manufacturing trends.

Currently holding a Zacks Rank of #3 (Hold), USAR’s strategic investments and supply chain consolidation position the company as a key player in reshaping North American rare earth independence. The completion of the Oklahoma facility and successful integration of LCM operations will be critical milestones to monitor through 2026.