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Can Commissioning of Hydromet Demonstration Facility Fuel USAR's Growth?
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Key Takeaways
USAR commissioned its Wheat Ridge demo facility to advance domestic rare earth processing.
USAR began testing ore, third-party feedstock and recycled magnet swarf processing.
USAR expects campaign data to support the Round Top feasibility study due by Q1 2027.
USA Rare Earth, Inc. (USAR - Free Report) is advancing its growth strategy with the successful commissioning of its hydrometallurgical demonstration facility in Wheat Ridge, CO. This milestone marks a key step in the company's efforts to establish a fully integrated domestic rare earth supply chain and positions it to begin producing separated heavy rare earth oxides in the third quarter of 2026.
Over the past year, USAR expanded its integrated platform of proprietary technologies and capabilities spanning mining, processing and separation, metals, alloys and magnets. The company also prepared the Wheat Ridge facility for demonstration-scale operations to support future commercial processing activities.
The facility has started initial campaigns to test and optimize three processing methods simultaneously: processing ore from the Round Top project, processing third-party mixed rare earth carbonate (MREC) feedstock, including material from Serra Verde's Pela Ema mine, and recycling rare earth magnet swarf. The resulting oxides are expected to support downstream metal, alloy and magnet production through Less Common Metals, one of the few commercial-scale metal, alloy and strip cast producers outside China. Heavy rare earth oxides such as dysprosium, terbium and yttrium are critical materials used in defense, energy, electric vehicle and other advanced technology applications.
The demonstration campaigns are expected to generate operational data that will support the Round Top Definitive Feasibility Study, which remains on track for completion in the fourth quarter of 2026 and publication in the first quarter of 2027. As operations advance, the Wheat Ridge facility is expected to play an important role in strengthening the U.S. rare earth supply chain.
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 90% in the past year compared with the industry’s growth of 50.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 71.85X against the industry’s average of 14.92X. 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 30 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
Can Commissioning of Hydromet Demonstration Facility Fuel USAR's Growth?
Key Takeaways
USA Rare Earth, Inc. (USAR - Free Report) is advancing its growth strategy with the successful commissioning of its hydrometallurgical demonstration facility in Wheat Ridge, CO. This milestone marks a key step in the company's efforts to establish a fully integrated domestic rare earth supply chain and positions it to begin producing separated heavy rare earth oxides in the third quarter of 2026.
Over the past year, USAR expanded its integrated platform of proprietary technologies and capabilities spanning mining, processing and separation, metals, alloys and magnets. The company also prepared the Wheat Ridge facility for demonstration-scale operations to support future commercial processing activities.
The facility has started initial campaigns to test and optimize three processing methods simultaneously: processing ore from the Round Top project, processing third-party mixed rare earth carbonate (MREC) feedstock, including material from Serra Verde's Pela Ema mine, and recycling rare earth magnet swarf. The resulting oxides are expected to support downstream metal, alloy and magnet production through Less Common Metals, one of the few commercial-scale metal, alloy and strip cast producers outside China. Heavy rare earth oxides such as dysprosium, terbium and yttrium are critical materials used in defense, energy, electric vehicle and other advanced technology applications.
The demonstration campaigns are expected to generate operational data that will support the Round Top Definitive Feasibility Study, which remains on track for completion in the fourth quarter of 2026 and publication in the first quarter of 2027. As operations advance, the Wheat Ridge facility is expected to play an important role in strengthening the U.S. rare earth supply chain.
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 90% in the past year compared with the industry’s growth of 50.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 71.85X against the industry’s average of 14.92X. 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 30 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.