We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Does Commissioning of Stillwater Facility Mark a Turning Point for USAR?
Read MoreHide Full Article
Key Takeaways
USA Rare Earth commissions Phase 1a magnet line, enabling NdFeB production from Q2 2026.
USAR's Stillwater plant to reach 600 metric tons capacity by end-2026, doubling by Q1 2027.
Facility supports U.S. supply chain with magnets for defense, aerospace and automotive sectors.
USA Rare Earth, Inc. (USAR - Free Report) has marked a significant milestone with the commissioning of Phase 1a of its commercial magnet production line at its Stillwater facility in Oklahoma. This development positions the company to begin fulfilling customer orders for sintered neodymium-iron-boron (NdFeB) permanent magnets starting in the second quarter of 2026.
It is worth noting that in 2025, USAR installed equipment, assembled Line 1a and prepared the facility for commissioning in 2026. The company also expanded its workforce by hiring and training engineers and technicians to support operations, steps aimed at reaching commercial-scale output and securing long-term customer agreements.
The commissioning confirms the facility’s ability to operate a complex, multi-step manufacturing process at a commercial scale. The production process involves the transformation of rare earth and metallic elements into ultra-fine powder, refining it through jet milling in a controlled environment and then shaping, coating and magnetizing the material into NdFeB magnets. These high-performance magnets are used in defense, aerospace, automotive and other high-growth industries.
Phase 1a is expected to ramp up to an annual run rate capacity of 600 metric tons by the end of 2026. In the quarters ahead, the addition of Phase 1b is expected to double the Stillwater facility’s total capacity to 1,200 metric tons per annum by the first quarter of 2027.
Once fully operational, the Stillwater facility is expected to be one of the first large-scale NdFeB magnet plants in the United States, helping strengthen the country’s domestic rare earth supply chain. With demand for high-performance magnets rising, this milestone helps USAR tap new opportunities and support its long-term growth.
Snapshot of USA Rare Earth’s Peers
Among its major peers, Trilogy Metals Inc. (TMQ - Free Report) continues to make steady progress at the Ambler mining district. Although Trilogy is not yet in production, it is taking a step ahead with Ambler Metals LLC, which is a joint venture with South32 Limited. In July 2025, Trilogy began a multi-year core re-boxing program to protect drill core for long-term future use.
USAR’s other peer, NioCorp Developments Ltd. (NB - Free Report) , is working to move its Elk Creek Project in Nebraska closer to production. In August 2025, NioCorp completed its first drilling program at the Elk Creek Project on schedule and within budget. In February 2026, NioCorp started construction of the main underground access for its Elk Creek Critical Minerals Project in southeast Nebraska.
USAR’s Price Performance, Valuation & Estimates
Shares of USAR have gained 127.7% in the past year compared with the industry’s growth of 51.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 42.95X against the industry’s average of 13.86X. USA Rare Earth carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for USAR’s 2026 earnings has decreased over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Does Commissioning of Stillwater Facility Mark a Turning Point for USAR?
Key Takeaways
USA Rare Earth, Inc. (USAR - Free Report) has marked a significant milestone with the commissioning of Phase 1a of its commercial magnet production line at its Stillwater facility in Oklahoma. This development positions the company to begin fulfilling customer orders for sintered neodymium-iron-boron (NdFeB) permanent magnets starting in the second quarter of 2026.
It is worth noting that in 2025, USAR installed equipment, assembled Line 1a and prepared the facility for commissioning in 2026. The company also expanded its workforce by hiring and training engineers and technicians to support operations, steps aimed at reaching commercial-scale output and securing long-term customer agreements.
The commissioning confirms the facility’s ability to operate a complex, multi-step manufacturing process at a commercial scale. The production process involves the transformation of rare earth and metallic elements into ultra-fine powder, refining it through jet milling in a controlled environment and then shaping, coating and magnetizing the material into NdFeB magnets. These high-performance magnets are used in defense, aerospace, automotive and other high-growth industries.
Phase 1a is expected to ramp up to an annual run rate capacity of 600 metric tons by the end of 2026. In the quarters ahead, the addition of Phase 1b is expected to double the Stillwater facility’s total capacity to 1,200 metric tons per annum by the first quarter of 2027.
Once fully operational, the Stillwater facility is expected to be one of the first large-scale NdFeB magnet plants in the United States, helping strengthen the country’s domestic rare earth supply chain. With demand for high-performance magnets rising, this milestone helps USAR tap new opportunities and support its long-term growth.
Snapshot of USA Rare Earth’s Peers
Among its major peers, Trilogy Metals Inc. (TMQ - Free Report) continues to make steady progress at the Ambler mining district. Although Trilogy is not yet in production, it is taking a step ahead with Ambler Metals LLC, which is a joint venture with South32 Limited. In July 2025, Trilogy began a multi-year core re-boxing program to protect drill core for long-term future use.
USAR’s other peer, NioCorp Developments Ltd. (NB - Free Report) , is working to move its Elk Creek Project in Nebraska closer to production. In August 2025, NioCorp completed its first drilling program at the Elk Creek Project on schedule and within budget. In February 2026, NioCorp started construction of the main underground access for its Elk Creek Critical Minerals Project in southeast Nebraska.
USAR’s Price Performance, Valuation & Estimates
Shares of USAR have gained 127.7% in the past year compared with the industry’s growth of 51.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 42.95X against the industry’s average of 13.86X. USA Rare Earth carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for USAR’s 2026 earnings has decreased over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.