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Will Stillwater Facility Ramp-Up Drive Long-Term Growth for USAR?
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Key Takeaways
USAR commissioned Phase 1a of its NdFeB magnet production line at the Stillwater facility.
Stillwater Phase 1a targets 600 metric tons of annual capacity by the end of 2026.
USA Rare Earth plans Phase 1b to double Stillwater capacity to 1,200 metric tons annually.
USA Rare Earth, Inc. (USAR - Free Report) has achieved a key milestone with the commissioning of Phase 1a of its commercial magnet production line at the Stillwater facility in Oklahoma. The development enables USAR to start fulfilling customer orders for sintered neodymium-iron-boron (NdFeB) permanent magnets in the second quarter of 2026.
During 2025, USAR installed equipment, assembled Line 1a and prepared the Stillwater site for commercial commissioning in 2026. The company also strengthened its operational capabilities by hiring and training engineers and technicians to support production scale-up and long-term customer agreements.
The successful commissioning demonstrates the facility’s ability to manage a complex, multi-step manufacturing process at commercial scale. The process converts rare earth and metallic elements into ultra-fine powder, which is refined through jet milling in a controlled environment before being shaped, coated and magnetized into NdFeB permanent magnets. These magnets are widely used across defense, aerospace, automotive and other fast-growing industries.
Phase 1a is expected to reach an annual run-rate production capacity of 600 metric tons by the end of 2026. The planned addition of Phase 1b is projected to double the Stillwater facility’s total capacity to 1,200 metric tons annually by the first quarter of 2027.
Once fully operational, the Stillwater facility is expected to become one of the first large-scale NdFeB magnet manufacturing plants in the United States, strengthening the domestic rare earth supply chain. Rising demand for high-performance magnets positions USAR to capitalize on expanding market opportunities and support its long-term growth trajectory.
Snapshot of USA Rare Earth’s Peers
Among its major peers, 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 other peer, 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 Price Performance, Valuation & Estimates
Shares of USAR have gained 154.1% in the past year compared with the industry’s growth of 65%.
Image Source: Zacks Investment Research
From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 31.30X against the industry’s average of 16.67X. 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 #4 (Sell).
View the Zacks #1 Rank List
Image: Bigstock
Will Stillwater Facility Ramp-Up Drive Long-Term Growth for USAR?
Key Takeaways
USA Rare Earth, Inc. (USAR - Free Report) has achieved a key milestone with the commissioning of Phase 1a of its commercial magnet production line at the Stillwater facility in Oklahoma. The development enables USAR to start fulfilling customer orders for sintered neodymium-iron-boron (NdFeB) permanent magnets in the second quarter of 2026.
During 2025, USAR installed equipment, assembled Line 1a and prepared the Stillwater site for commercial commissioning in 2026. The company also strengthened its operational capabilities by hiring and training engineers and technicians to support production scale-up and long-term customer agreements.
The successful commissioning demonstrates the facility’s ability to manage a complex, multi-step manufacturing process at commercial scale. The process converts rare earth and metallic elements into ultra-fine powder, which is refined through jet milling in a controlled environment before being shaped, coated and magnetized into NdFeB permanent magnets. These magnets are widely used across defense, aerospace, automotive and other fast-growing industries.
Phase 1a is expected to reach an annual run-rate production capacity of 600 metric tons by the end of 2026. The planned addition of Phase 1b is projected to double the Stillwater facility’s total capacity to 1,200 metric tons annually by the first quarter of 2027.
Once fully operational, the Stillwater facility is expected to become one of the first large-scale NdFeB magnet manufacturing plants in the United States, strengthening the domestic rare earth supply chain. Rising demand for high-performance magnets positions USAR to capitalize on expanding market opportunities and support its long-term growth trajectory.
Snapshot of USA Rare Earth’s Peers
Among its major peers, 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 other peer, 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 Price Performance, Valuation & Estimates
Shares of USAR have gained 154.1% in the past year compared with the industry’s growth of 65%.
Image Source: Zacks Investment Research
From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 31.30X against the industry’s average of 16.67X. 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 #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.