USA Rare Earth, Inc. (NASDAQ: USAR) has announced a US$1.2 billion investment to construct a sintered neodymium-iron-boron (NdFeB) permanent magnet manufacturing and refined rare earth metals facility at Bailey Industrial Park in Blacksburg, Cherokee County, South Carolina. The announcement, made on June 2, 2026, marks one of the largest single investments in domestic rare earth processing infrastructure in American history. The facility is designed to produce 6,400 metric tons per year of sintered NdFeB permanent magnets and 5,000 metric tons per year of rare earth metals and alloys, serving end markets in defense, aerospace, semiconductors, medical technology, artificial intelligence, and clean energy. Site preparation work is expected to begin within months, with commissioning targeted for April 2028. The full production process at Blacksburg will encompass electrolysis, metallothermic reduction, strip casting, jet milling, dry pressing, sintering, heat treatment, machining, and coating, establishing an end-to-end manufacturing chain under a single roof. The project is expected to generate approximately 490 high-skill, high-wage manufacturing jobs in Cherokee County. South Carolina’s incentives package includes grants, tax credits and exemptions, and a fee-in-lieu-of-tax agreement with the county, while Duke Energy has confirmed power delivery to the site. Federal support is substantial: the U.S. Department of Commerce CHIPS Program Office has issued a non-binding letter of intent to provide up to US$1.58 billion in financing, comprising a US$277 million grant and a US$1.3 billion loan, in exchange for an equity stake of between 8 and 16 percent.

America’s Rare Earth Bet and the Race to Challenge Chinese Dominance

The Blacksburg facility is the most visible expression yet of a national industrial strategy that has been building momentum for several years. China currently controls an estimated 85 to 90 percent of global rare earth magnet production, a monopoly that Western governments regard as a structural vulnerability in their defense and energy transition supply chains. USA Rare Earth is deploying capital across multiple fronts simultaneously: its Stillwater, Oklahoma magnet plant entered commercial production in March 2026, and its Round Top deposit in West Texas is advancing under a Definitive Feasibility Study led by Fluor and WSP as EPCM partners, with commercial production at that site also targeting late 2028. The combined capacity across Oklahoma and South Carolina is intended to reach 10,000 metric tons per year of NdFeB magnets and 10,000 metric tons per year of heavy rare earth metals and alloys. The only near-comparable domestic competitor is MP Materials, which is pursuing its own integrated mine-to-magnet strategy from its Mountain Pass, California operations, though the two companies have recently entered a legal dispute over alleged misappropriation of proprietary magnet technology. South Carolina’s selection over competing states reflects a combination of advanced manufacturing workforce depth, logistical infrastructure, and the energy readiness that Duke Energy’s early site engagement helped secure. Cherokee County’s win positions the Upstate South Carolina industrial corridor, already home to BMW’s U.S. manufacturing hub and a growing aerospace cluster, as a serious node in the emerging American critical minerals value chain.

Project Fact Sheet

• Project Name: USA Rare Earth Blacksburg Magnet Manufacturing and Refined Metals Facility
• Location: Bailey Industrial Park, Blacksburg, Cherokee County, South Carolina, USA
• Project Value: US$1.2 billion
• Client/Owner: USA Rare Earth, Inc. (NASDAQ: USAR)
• Key Products: 6,400 metric tons per year sintered NdFeB permanent magnets; 5,000 metric tons per year rare earth metals and alloys
• Key Processes: Electrolysis, metallothermic reduction, strip casting, jet milling, dry pressing, sintering, heat treatment, machining and coating
• Construction Start: Site work commencing mid-2026
• Expected Commissioning: April 2028
• Jobs Created: Approximately 490 high-skill, high-wage manufacturing positions
• Federal Financing: US$1.58 billion non-binding letter of intent from U.S. Department of Commerce CHIPS Program Office (US$277 million grant plus US$1.3 billion loan); up to US$19.3 million from U.S. Department of Energy Critical Materials Innovation program
• State and County Incentives: South Carolina grants, tax credits and exemptions; Cherokee County fee-in-lieu-of-tax agreement
• Strategic Impact: Advances USA Rare Earth’s targeted 10,000 metric tons per year combined domestic NdFeB magnet capacity; reduces U.S. dependency on Chinese rare earth magnet supply

Project Team

• Client/Owner: USA Rare Earth, Inc. (NASDAQ: USAR)
• Chief Executive Officer: Barbara Humpton, USA Rare Earth
• Power Utility Partner: Duke Energy (confirmed energy delivery to site)
• Federal Financing Body: U.S. Department of Commerce CHIPS Program Office (non-binding LOI: US$277 million grant plus US$1.3 billion loan)
• Federal Grant Agency: U.S. Department of Energy (up to US$19.3 million, Critical Materials Innovation, Efficiency and Alternatives program)
• State Government Partner: State of South Carolina (Governor Henry McMaster)
• County Partner: Cherokee County (fee-in-lieu-of-tax and industrial-park designation)
• Main Contractor: Not yet confirmed; given USAR’s established relationship with Fluor Corporation as EPCM lead on the Round Top Texas project, Fluor is a strong candidate, alongside firms such as Bechtel and Jacobs, which have deep experience in advanced materials and chemical processing facilities
• Regulatory Oversight: U.S. Department of Defense (likely end-user procurement partner); South Carolina Department of Commerce