Has USAR Found the Final Link in US Mine-to-Magnet Chain?

Efforts by the US to end its reliance on China for rare earth metals and alloys have been boosted by USA Rare Earth’s acquisition of Less Common Metals.

The deal has been hailed by USAR CEO Barbara Humpton as “the missing link in America’s rare earth supply chain”.

LCM is the only scaled metal and alloy producer outside of China, so the move by USAR accelerates its mine-to-magnet strategy.

It comes amid growing global urgency to secure rare earth supplies, driven by the rapid growth of AI and the volume of products and industries that require permanent magnets to power them.

A critical linchpin capability

Speaking on CNBC Overtime on just her second day as USAR CEO, Barbara said: “This deal secures the missing link in America’s rare earth supply chain – metal- and alloy-making and strip-casting – and significantly accelerates USAR’s mine-to-magnet strategy.”

Barbara added: “There is a global imperative now to build a mine-to-magnet supply chain for critical rare earth and the board of USA Rare Earth has this vision and it has been making bold moves.

“This is truly going to ensure that we have the first domestic supply chain outside of China for heavy rare earth metals, alloys, going all the way to permanent magnets.”

What makes LCM such a key player?

According to Barbara, permanent magnets “power the world”. But they cannot operate without rare earth metals.

She said: “Everything from aerospace to defence, to automotive to the consumer electronics that we use… anything that moves is taking advantage of permanent magnets to drive that motion.

“This is a space that is not only large, but growing. With the introduction of physical AI and the idea that we will have more and more high-tech components that require this kind of support, we know that even China will be stretched to provide for the demand.”

In order to make permanent magnets, you have to have strip casts: the feed stock that goes into the magnets.

Barbara said: “It turns out LCM is that scaled supplier outside of China and particularly with access to additional feed stocks for their own work.

“LCM has spent 30 years building this critical linchpin capability – the metal making, alloy making, casting and strip casting to provide that feedstock.

“Bringing our two organisations together means that we can provide that capability, but also we can serve the broader market together.”

The global perspective

The race to secure rare earth metal supplies has been given added urgency this year by China’s decision to cut off its supply to the US and its allies.

But there remains the question of whether alternative global operations can compete for price with China.

Barbara said: “We all got a wake-up call this year. There has been globalisation which has driven so much manufacturing overseas.

“And when China decided that they would not be providing rare earth for the magnets to the US and our trading partners, that sent a shockwave through the system.

“But we don’t need to undercut Beijing on price: what we need to do is deliver a secure and reliable supply of the very magnets that are needed to move the world.”

Strengthening the US

In recent months, the Trump Administration has acquired shares in some key mining and technology companies, including:

Intel – 10%

MP Materials – 15%

Lithium Americas – 5%

Thacker Pass Mine – additional 5%.

The deals are part of a strategy to create US supply chains that are independent from other global markets.

Barbara said: “Now is the time to invest in this market segment and build the capability.

“We are in close communication with the Administration. We applaud what the Trump Administration has done in order to make investments in this area.”

Writing on LinkedIn, USAR said: “This acquisition is a pivotal step in delivering on our vision: building the nation’s first end-to-end mine-to-magnets supply chain, creating jobs, driving industrial revival, and strengthening the US.”