USAR acquires Less Common Metals to accelerate mine-to-magnet strategy

USA Rare Earth

USAR acquires Less Common Metals in a $125mn deal that reshapes non-Chinese rare earth supply chains. The USAR acquires Less Common Metals transaction combines upstream resources, metal production and magnet alloys into one integrated platform. As a result, USAR acquires Less Common Metals to strengthen Western access to critical rare earth magnet materials.

USAR acquires Less Common Metals to secure rare earth metals and alloys

USAR acquires Less Common Metals through a mix of $100mn cash and 6.74mn USAR shares. The acquisition brings LCM’s Cheshire plant, which produces light and heavy rare earth metals and strip cast magnet alloys. LCM supplies samarium, samarium–cobalt, neodymium praseodymium, terbium, yttrium and gadolinium for permanent magnet applications. This portfolio anchors USAR’s move into high-value magnet metals rather than only rare earth oxides. LCM is the only large-scale producer of such metals and alloys outside China, making its assets strategically important. Therefore the deal immediately boosts Western capacity along the magnet value chain. USAR plans to expand LCM’s UK production footprint to meet rising demand from defense, automotive and industrial customers.

Building an integrated mine-to-magnet platform in the US and UK

USAR will integrate LCM’s know-how into its Stillwater, Oklahoma, facility to support a planned 5,000 t/yr magnet plant. This integration creates a tighter loop from rare earth metal production into finished magnet manufacturing. At the same time, USAR’s Round Top rare earth deposit in Texas will underpin long-term feed for metals and alloys. The company also highlights its ability to process recycled rare earth oxides, adding a circular element to the supply chain. Together, these assets form a closed-loop mine-to-magnet model spanning mining, metals, alloys and recycling. LCM’s established customer relationships across US and European magnet makers, as well as defense and automotive supply chains, provide immediate market access. As a result, the combined group can offer Western buyers secure, non-Chinese supply options for critical rare earth magnet materials.

The Metalnomist Commentary

This acquisition underscores how quickly mine-to-magnet integration is becoming a strategic priority in the rare earth sector. If USAR executes on its expansion plans, it will sit at the center of a transatlantic magnet supply chain that reduces reliance on Chinese metal and alloy producers. For policymakers and OEMs, the deal offers a concrete example of how capital, geology and processing know-how must align to de-risk critical materials.