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USAR Enhances Rare Earth Supply Chain With LCM's Partnership Deal

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Key Takeaways

  • USAR's LCM unit signed a supply pact with Solvay and Arnold to bolster rare earth supply chains.
  • The deal uses LCM's alloy-making expertise to give Arnold a stable ex-China source for magnet materials.
  • LCM will also feed alloys to USAR's Oklahoma magnet plant set for commissioning in early 2026.

USA Rare Earth Inc. (USAR - Free Report) announced that its recently acquired subsidiary, Less Common Metals (“LCM”), has inked a supply agreement with Solvay and Arnold Magnetic Technologies Corporation. This move will strengthen the U.S. and European rare earth supply chains and ensure long-term stability for key sectors.

USAR’s Benefits From the Deal

The partnership will employ LCM's expertise in metal and alloy making production to provide Arnold with a reliable, ex-China supply of rare-earth materials for manufacturing advanced permanent magnets. LCM’s involvement highlights the strategic significance of maintaining secure and dependable supply channels for rare-earth materials, further demonstrating the importance of collaboration between trusted partners for access to critical rare-earth materials for global magnet manufacturers.

USA Rare Earth acquired LCM in November 2025. LCM is a U.K.-based manufacturer of specialized rare earth metals and both cast and strip cast alloys. LCM is the only proven ex-China producer of both light and heavy rare earth permanent magnet metals and alloys at scale. 

The acquisition accelerates USA Rare Earth’s mine-to-magnet strategy, establishing an end-to-end rare earth supply chain. LCM will supply alloy feedstock to USAR's Oklahoma magnet manufacturing plant, which remains scheduled for commissioning in the first quarter of 2026.

USA Rare Earth Stock’s Price Performance

In a year, USAR shares have gained 26.2%, outpacing the industry's 21.8% growth.

 

Zacks Investment Research Image Source: Zacks Investment Research

 

USAR’s Zacks Rank & Stocks to Consider

USAR currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials space are OR Royalties Inc. (OR - Free Report) , Newmont Corporation (NEM - Free Report) and Agnico Eagle Mines (AEM - Free Report) . OR, NEM and AEM sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for OR Royalties’ 2025 earnings is pegged at 82 cents per share. The estimate indicates year-over-year growth of 57.7%. OR Royalties’ shares have surged 80% in a year.

The consensus estimate for Newmont’s 2025 earnings is pegged at $6.05 per share. The estimate suggests year-over-year growth of 73.8%. It has an average trailing four-quarter earnings surprise of 41.6%. Newmont’s shares have soared 124.4% in a year.

The consensus estimate for Agnico Eagle Mines’ 2025 earnings is pegged at $7.77 per share. The estimate implies a year-over-year rally of 83.6%. It has an average trailing four-quarter earnings surprise of 11.6%. Agnico Eagle Mines’ shares have surged 107.6% in a year.

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