USA Rare Earth Strengthens Value Chain with Support of the French Government

USAR to Launch 3,750 mtpa Plant through LCM Europe to Produce Metal and Alloy in France

French Government to Provide Direct Tax Credits to Finance LCM Europe

STILLWATER, Okla., Jan. 20, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (NASDAQ:USAR) (USAR or the Company), through its subsidiary Less Common Metals (LCM) Europe SAS today announced plans to develop a 3,750 metric ton per annum (mtpa) metal and alloy production facility in Lacq, France. The facility will be co-located with Carester SAS' 1,600 mtpa Caremag oxide processing facility in Lacq, which is scheduled for commissioning in late 2026. Together, this platform will establish a comprehensive supply chain for rare earth processing, metal and alloy production in Europe.

The French government has committed to address multiple aspects of LCM Europe's capital and operating requirements. LCM Europe was approved for direct credits under the C3IV program of up to 45% of all eligible equipment and up to a total of €130m for real estate. The French government is also interested in providing support for hiring and training programs to bolster talent development and skills building at LCM Europe's new facility.

"The development of an integrated rare earth processing and metal-making platform in France enhances USAR's integrated rare earth value chain, to the benefit of the United States and our allies," said Barbara Humpton, Chief Executive Officer of USAR. "We are proud to establish Europe's first metal-making platform, which will accelerate the realization of a secure, sustainable transatlantic rare earth value chain."

The creation of this broad rare earth processing and commercialization platform reflects USAR's ambition to build a more resilient and sustainable European rare earth industry that supports industrial sovereignty by securing critical resources and capabilities for advanced technologies and the energy transition.

About USA Rare Earth

USA Rare Earth, Inc. (NASDAQ:USAR) is creating a fully integrated ex-China rare earth and permanent magnet value chain. Through its ownership of Less Common Metals ("LCM"), one of the world's leading producers of rare earth metals and alloys, and its development of magnet manufacturing capacity in Stillwater, Oklahoma, USAR operates across the entire value chain from heavy rare earth processing to metal-making, alloy production, and neodymium magnet manufacturing. By combining domestic feedstock from the Round Top deposit with advanced processing technologies, recycling capabilities, and a growing European industrial footprint, USAR is establishing a secure, sustainable, Western-aligned supply of materials essential to defense, electrification, robotics, renewable energy, and advanced manufacturing industries.

Forward-looking Statements

Certain matters discussed in this press release are or contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These statements, which involve risks and uncertainties include statements relating to the development of USAR and LCM's international operations, including without limitation expectations for future development, operations, business strategies, financial performance, sales and customers, the risks and benefits of developing a production facility at Lacq, and the likelihood of receiving, and the benefits if received, of support from the French government. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as "anticipate", "believe", "can", "continue", "could", "estimate", "expect", "forecast", "intend", "may", "might", "plan", "possible", "potential", "predict", "project", "seek", "should", "strive", "target", "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 that could cause actual results to differ materially from our expectations. These risks and uncertainties include, but are not limited to: (1) the risk that the development and integration of the new facility will be more costly or difficult than expected; (2) the risk that the expected production from the new facility may not be fully realized or may take longer to realize than expected; (3) the risk that support from the French government will not be received on the terms or at the times expected, or at all; (4) the risk that the benefits anticipated from co-location with Carester's Caremag oxide processing facility will not be realized, will be more costly to realize or will take longer to realize than expected; (5) the risk that the significant long-term and inherently risky investments that USAR and LCM are making in mining and manufacturing facilities may not realize a favorable return; (6) the risk of litigation related to the additional operations; (7) the diversion of management time from ongoing business operations and opportunities as a result of the new facility; (8) LCM's and USAR's ability to retain customers and suppliers and their ability to build or maintain relationships with customers and suppliers; (9) USAR's ability to successfully develop its metal making and magnet production facility and the timing of expected production milestones; (10) competition in the metal making and magnet manufacturing industry; (11) the ability to grow and manage growth profitably; (12) the ability to attract and retain management and key employees; (13) the overall supply and demand for rare earth minerals, including feedstock for the new facility; (14) the timing and amount of future production; (15) the costs of production, capital expenditures and requirements for additional capital, including the need to raise additional capital to implement USAR's strategic plan; (16) substantial doubt regarding the Company's ability to continue as a going concern for the twelve months following the issuance of its third quarter 2025 Condensed Consolidated Financial Statements; (17) the timing of future cash flow provided by operating activities, if any; (18) the risk that the Round Top Deposit might not be able to be commercially mined and the Company's ongoing exploration programs may not result in the development of profitable commercial mining operations; (19) the uncertainty in any mineral estimates, uncertainty in any geological, metallurgical, and geotechnical studies and opinions; (20) fluctuations in transportation costs or disruptions in transportation services or damage or loss during transport; and (21) other risks and uncertainties described under the heading "Risk Factors" in USAR's periodic filings with the SEC, including the Company's Form 10-K that the Company filed with the SEC on March 31, 2025 and the Company's latest Quarterly Reports on Form 10-Q filed with the SEC. Detailed information regarding factors that may cause actual results to differ materially has been and will be included in the Company's periodic filings with the SEC, including the Company's Form 10-K that the Company filed with the SEC on March 31, 2025 and the Company's latest Quarterly Reports on Form 10-Q filed with the SEC. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors. Any forward-looking statements speak only as of their date, and USAR and LCM undertakes no obligation to update any forward-looking statements to reflect events or circumstances occurring after their date or to reflect the occurrence of unanticipated events.

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Lionel McBee

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