Approximately $1.2 billion investment expected to create about 490 high-skill, high-wage manufacturing jobs in South Carolina’s Upstate
Blacksburg facility will serve as a cornerstone of USA Rare Earth’s domestic magnet manufacturing footprint and advance the Company’s integrated mine-to-magnet value chain
Investment strengthens U.S. capacity to produce critical rare earth metals and magnets for defense, aerospace, semiconductors, energy and other advanced industries

BLACKSBURG, S.C., Sept. 09, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (NASDAQ:USAR) ("USA Rare Earth," "USAR" or the "Company"), a rare earth, critical minerals and advanced materials company, today broke ground on its new rare earth metal and magnet manufacturing facility in Blacksburg, South Carolina, marking a major step in the Company’s effort to build a secure, integrated rare earth supply chain for the United States and its allies.

Located on a 124-acre site in Bailey Industrial Park in Cherokee County, the approximately 800,000-square-foot facility represents an approximately $1.2 billion investment and is expected to create roughly 490 high-skill, high-wage manufacturing jobs in South Carolina’s Upstate. Once online, the facility is targeting production capacity of 6,400 metric tons per annum (tpa) of sintered neodymium-iron-boron (NdFeB) permanent magnets and 5,000 tpa of strip-cast metal and alloy, with commissioning targeted to begin in 2028.

"Breaking ground in Blacksburg is an important moment because it moves our vision from plans on paper to infrastructure taking shape," said Barbara Humpton, Chief Executive Officer of USA Rare Earth. "We’re building the capabilities America needs to make critical rare earth materials and magnets at home, while making a long-term investment in the people and communities that will help us do it. We’re proud that the next chapter of USA Rare Earth’s growth is being built here in South Carolina."

Investing in South Carolina and the Upstate

USA Rare Earth selected Blacksburg following a comprehensive evaluation of nearly 275 potential sites across the country. South Carolina stood out for its skilled advanced manufacturing workforce, reliable power, transportation infrastructure, proximity to customers and suppliers, and strong support from state and local partners. Located along the Interstate 85 corridor, the operation will add to an advanced manufacturing ecosystem that has made the Upstate an important center of American industrial production.

As part of its broader commitment to Cherokee County and the region’s growing manufacturing economy, USA Rare Earth today also announced a $250,000 contribution to Spartanburg Community College to support its new SPARK Center in Cherokee County. The new center will connect education, workforce development and economic development, providing resources to support businesses locating, launching and growing in the county while helping strengthen the local talent pipeline and broader business ecosystem.

"This Blacksburg community has the infrastructure, talent and manufacturing heritage to support what we’re building, but just as important has been the commitment we’ve seen from people across Blacksburg, Cherokee County and South Carolina," said David Bushi, Senior Vice President of Manufacturing at USA Rare Earth. "We intend to build something here that creates opportunity locally and strengthens American manufacturing for decades to come."

"South Carolina’s greatest strength has always been our people and their ability to build things the world depends on," said South Carolina Governor Henry McMaster. "USA Rare Earth’s decision to put down roots in Blacksburg is another tremendous vote of confidence in our workforce and in the manufacturing future of our state. Today, we celebrate the start of a project that will create new opportunities for families across Cherokee County and the Upstate while helping America rebuild a critical industry here at home."

Building a Secure, Integrated Rare Earth Supply Chain

The groundbreaking also marks an important milestone in USA Rare Earth’s broader strategy to build and grow a secure, globally integrated rare earth value chain that reduces reliance on concentrated sources of supply. Rare earth metals and permanent magnets are essential inputs across defense, aerospace, semiconductor manufacturing, physical AI, mobility, energy, healthcare and other advanced industries. Yet the United States remains heavily dependent on foreign sources for many of these critical materials and manufacturing capabilities, with China dominating significant portions of the global rare earth supply chain.

USA Rare Earth is working to change that by building capabilities across the full value chain — from mining and processing to separation, metal- and alloy-making and permanent magnet manufacturing.

The Blacksburg facility will complement USA Rare Earth’s existing magnet manufacturing operation in Stillwater, Oklahoma, where the Company commissioned its first commercial production line earlier this year. Together, Blacksburg and the planned expansion at Stillwater are expected to provide USA Rare Earth with 10,000 tpa of domestic NdFeB magnet manufacturing capacity. The Company is also investing in and expanding capabilities across its broader global platform, supporting local production and economic development while connecting critical rare earth resources with advanced manufacturing markets globally.

"A secure rare earth supply chain isn’t built with a single mine or a single factory. It requires rebuilding every link," said Gregory Bowman, Chief Global Policy Officer of USA Rare Earth. "Blacksburg adds critical manufacturing capacity to that broader platform and brings the United States closer to producing more of the materials and magnets our industries depend on outside of Chinese control. What starts with a groundbreaking here in South Carolina ultimately strengthens America’s industrial and national security."

Partnership Turning Vision Into Reality

USA Rare Earth is working with a team of construction, development, engineering and technology partners to bring the Blacksburg facility online.

Clark Construction Group and Frampton Construction are serving as design-builder through the Clark/Frampton joint venture, with Trammell Crow Company serving as developer. McMillan Pazdan Smith is serving as project architect in collaboration with Bennett & Pless, Thomas & Hutton and Salas O’Brien. Chang Robotics is bringing expertise in advanced manufacturing, automation and robotics.

"Large-scale manufacturing investments succeed when ambition is matched by disciplined execution," said Spencer Middleton, vice president with Clark Construction. "Our focus is on translating the significance of this project into a construction effort that is equally rigorous, bringing the right people, resources, and planning together to deliver for USA Rare Earth and South Carolina."

"Projects of this scale demand a different level of alignment from the start," said Dave Florence, chief strategy officer at Frampton Construction. "The decisions made early, the trust established across the team, and the ability to solve problems together all shape what happens in the field. We’re proud to help deliver an investment that will expand advanced manufacturing in South Carolina and strengthen domestic production for years to come."

About USA Rare Earth

USA Rare Earth, Inc. (NASDAQ:USAR) is building a fully integrated rare earth and permanent magnet value chain across the United States, Brazil and the United Kingdom. Through its ownership of Less Common Metals (LCM), one of the world’s leading producers of rare earth metals and alloys, its development of magnet manufacturing capacity in Stillwater, Oklahoma, the Pela Ema mine in Brazil and the Round Top deposit in Texas, USA Rare Earth operates across the entire value chain from mining to metal-making, alloy production and neodymium magnet manufacturing. USA Rare Earth is establishing a secure, Western-aligned supply of materials essential to the aerospace and defense, semiconductor, energy, data center, physical AI, mobility, healthcare and industrial sectors. For more information, visit www.usare.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include those relating to the expected capital investment, job creation, production capacity and commissioning timeline of the planned rare earth metal and magnet manufacturing facility in Blacksburg, South Carolina, anticipated development of Spartanburg Community College’s new SPARK Center, the potential impact of the Blacksburg facility on domestic magnet manufacturing and the rare earth value chain and other statements regarding the Company’s expectations for future development, operations, strategies, transactions and financial performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as "aim," "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "growth," "intend," "may," "might," "plan," "potential," "project," "propose," "should," "target," "vision," "will," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

Forward-looking statements are subject to risks and uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from our expectations, including without limitation: risks associated with permitting, construction, workforce availability, the ability of our planned Blacksburg facility to commence commercial operations on the timing and with the production capacity anticipated or at all; risks that we may experience delays, unforeseen expenses, increased capital costs, and other complications while developing our projects; our ability to raise necessary capital on acceptable terms or at all; the availability of rare earth oxide, metal feedstock and other materials, utilities (including power and water) and equipment in quantities and prices that allow us to develop and commercially operate our Stillwater facility and other facilities; our ability to meet individual customer specifications and produce a consistently high quality product; potential supply chain, logistics or product delivery disruptions; any delays in obtaining or renewing permits and licenses; fluctuations in demand for and prices of neo magnets, rare earth elements and our other products, including without limitation as a result of dumping, predatory pricing and other tactics by our competitors or state actors or the overall competitive environment; risks that we may not realize the anticipated benefits of USA Rare Earth’s combination with Serra Verde or our proposed and prior acquisitions, including expected synergies, financial performance, estimated earnings before interest, taxes, depreciation and amortization and, in the case of Serra Verde, integration of operations, on the anticipated timeline or at all; potential delays in the optimization and commissioning program and the Phase II expansion at the Pela Ema facility; political, economic, regulatory, tax, currency and other risks associated with Serra Verde’s operations in Brazil and Switzerland; physical climate risks related to the Pela Ema mine; the assumption of substantial indebtedness under Serra Verde’s Retained Finance Agreement, which contains restrictive covenants and other requirements that could adversely affect the combined company’s financial flexibility and operations; risks that the Offtake Agreement is terminated or ceases to be in full force and effect or that the counterparty to the Offtake Agreement is insufficiently capitalized, including as a result of a failure to finalize definitive debt financing arrangements within the timeframes contemplated by the Offtake Agreement; risks that the proposed transaction with Carester SAS may not be consummated on its anticipated timeline or at all; the ability of our Stillwater magnet manufacturing facility to generate revenue; our limited operating history; our ability to commercially extract minerals from the Round Top deposit on our anticipated timeline or at all; differences between planned and actual recovery and yield rates; potential dilution to existing stockholders and adverse effect on our stock price if we issue additional common stock or equity-linked securities; the volatility of our stock price; any changes in royalty rates or the imposition of new royalties; risks associated with community relations; our ability to achieve positive cash flow or profitability or the ability to access cash flow within our corporate structure due to restrictions contained in our financing agreements; our ability to convert current commercial discussions and/or memorandums of understanding with customers for the sale of our neo magnets and other products into definitive orders; our dependence, in part, on the growth of existing and emerging uses for neo magnets; the risk that additional manufacturing, refining and mining competitors could result in a reduction in revenue; geopolitical developments or disruptions, such as changes in the political environment, export/import or environmental policy of the People’s Republic of China, the United States or other countries in which we operate or sell products or otherwise; our designation on an export control list by China which has had and is expected to continue to have an adverse impact on our ability to source key raw materials and supplies from China; war, terrorism, natural disasters or public health emergencies; our ability to retain or recruit key personnel; environmental, health and safety regulations; the receipt of funding from the U.S. Department of Commerce is subject to the achievement of milestones which may not be achieved on the expected timeline or at all; and our ability to comply with requirements for federal, state and local government incentives and financing.

Additional risks and detailed information regarding factors that may cause actual results to differ materially has been and will be included in our filings with the SEC, including our most recently filed Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q and subsequent filings. Any forward-looking statements speak only as of the date of this press release (or such other date as is specified in such statements), and we undertake no obligation to update any forward-looking statements as a result of new information or future events or developments.

Investor Relations Contact

J.B. Lowe, CFA

USA Rare Earth, Inc.

ir@usare.com

Media Relations Contact

Collected Strategies

Dan Moore / Scott Bisang

USAR-CS@collectedstrategies.com