USA Rare Earth (USAR)

US integrated rare-earths + gallium + magnet maker (Round Top, TX + Stillwater, OK magnet plant + LCM alloys, UK) — government-backed domestic supply, with Commerce now holding an 8-16% equity stake

AI exposure 5% — derived from reported segment revenue, not asserted.

Where it sits

Energy Supply & Critical Minerals → Critical Minerals & Base Metals · figures rebased to Q2 2026, reported 2026-08-10

Critical mineral/metal feeding the AI buildout

Reported segments

Core production (single focus) — 100% of revenue

USA Rare Earth (~$13M TTM revenue; Q2 2026 $5.8M) — US integrated rare earths + magnets. Every dollar of revenue today comes from Less Common Metals, the UK metals-and-alloys business, and it now loses money at the product level: $5.8M of Q2 revenue against $7.4M of cost, a -27% gross margin versus +1.9% in Q1. Round Top (Texas — neodymium/dysprosium/terbium/yttrium plus gallium, beryllium, lithium) is pre-production, with the definitive feasibility study due Q4 2026, S-K 1300 early 2027 and commercial production guided 2028; the Stillwater (OK) magnet line targets a 600 MTPA run-rate at…

How the 5% is built

Core production (single focus) — 100% of revenue × 5% AI-driven (estimate). All Q2 2026 revenue is LCM rare-earth alloy sold into broad motor, defense and industrial magnet supply chains; the AI-linked end-uses (robotics and data-centre-adjacent motors, and gallium for GaN once Round Top produces from 2028) are incremental and nothing is quantified by the company

Investment read

Moat. Still a strategy rather than an advantage, but the pieces are closer together: 100% of Round Top consolidated via the completed TMRC acquisition, the Stillwater magnet line and a Colorado hydrometallurgical facility commissioned, and definitive CHIPS agreements signed with the Department of Commerce — $277M of direct funding plus guarantees for up to $1.3B of senior secured loans, for which the government took 16.1M shares and a warrant for 17.6M more. What the company actually sells today is Less Common Metals alloy: $5.8M in Q2 at a -27% gross margin. The position remains policy-conferred…

Bottleneck / pricing power. No pricing power at all on ~$13M of trailing revenue — LCM printed a $(1.6)M gross loss in Q2 having been roughly breakeven a quarter earlier, which is the most troubling number in the release because running acquired midstream assets profitably is exactly what Serra Verde will demand. Demand-side pull is visible on the magnet side (about 2,500 MTPA under MOUs and LOIs against a 600 MTPA exit-2026 target, several converted to production purchase orders), but the economics that matter are Serra Verde's 15-year, 100%-of-Phase-1 offtake to a US government-capitalised SPV with Nd/Pr/Dy/Tb price…

Role in the AI stack. The would-be US mine-to-magnet + gallium layer — the only revenue today is acquired alloy sales; magnets guided from year-end 2026, Round Top from 2028.

Connected companies

MP Materials (MP) — USAR competes with: US rare earths — USA Rare Earth vs MP Materials
Lynas Rare Earths (LYC) — USAR competes with: non-China rare earths — Lynas vs USA Rare Earth
Infineon Technologies (IFNNY) — USAR supplies: Potential future domestic gallium (Round Top, ~2028) for GaN power devices; USAR not yet producing and no Infineon offtake named

Others in Critical Minerals & Base Metals

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