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Will USAR's AI-Driven Approach Enhance Rare-Earth Processing?
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Key Takeaways
USAR is partnering with Pasqal and Riven Systems to advance rare earth separation technology.
The collaboration will use automated experiments to identify selective extractants.
Technology could cut processing stages, equipment needs, energy use and environmental impact.
USA Rare Earth, Inc. (USAR - Free Report) is strengthening its rare earth processing capabilities through a strategic partnership with neutral-atom quantum computing company Pasqal Holding SA (PSQL - Free Report) and Riven Systems, an AI-based solutions provider for industrial chemistry, to advance next-generation separation technology for the rare earth value chain. The partnership will use quantum machine learning and automated experimentation to identify more effective molecules for separating rare earth elements.
The collaboration is aimed at addressing a key challenge in the rare earth supply chain (outside Asia), which is separating mixed rare earth carbonate (MREC) into individual oxides. The companies plan to use Riven’s self-driving minerals separation laboratory to conduct experiments and create data for machine learning models to identify extractants that selectively bind to rare earth elements. Pasqal will use its quantum computing technology to benchmark quantum machine learning models against traditional models and help optimize extractant selection.
The technology is expected to help USAR develop smaller, cost-effective and less energy-intensive processing facilities by reducing the number of separation stages, equipment requirements and raw material consumption. It could also lower the environmental impact and carbon footprint associated with rare earth processing.
The partnership is expected to focus on feedstocks including material from USAR’s planned Round Top mine in Texas, third-party MREC and recycled swarf from the magnet manufacturing process. The companies also aim to develop an end-to-end extractant discovery process, with promising molecules tested at Riven’s laboratory and validated at USAR’s R&D facility in Colorado. The collaboration supports USAR’s efforts to build a more integrated Western rare earth supply chain while improving the efficiency and economics of its processing operations.
Notable Partnerships of USAR’s Peers
Among its major peers, MP Materials Corp. (MP - Free Report) recently signed a long-term agreement to supply gadolinium to a new U.S. aerospace and defense customer, strengthening its customer base and expanding its heavy rare earth product portfolio. The company also formed a joint venture with the U.S. Department of War and Saudi Arabia’s mining company (Maaden) in November 2025 to build a rare-earth refinery in Saudi Arabia. MP Materials will use its technical expertise to process rare-earth materials for the US, Saudi Arabia and allied manufacturing and defense industries. MP Materials’ joint venture will strengthen global supply chains, expand its refining capacity and support US-Saudi economic ties.
In August 2025, USAR’s peer, Energy Fuels Inc. (UUUU - Free Report) , signed an MOU with Vulcan Elements to supply rare earth oxides for US-based magnet production. Per the deal, Energy Fuels will provide NdPr and Dy oxides to Vulcan from its White Mesa Mill in Utah for quality verification and future long-term supply. Energy Fuels is producing high-purity, ex-China rare earth oxides at a commercial scale, supporting a domestic rare earth magnet supply chain.
USAR’s Price Performance, Valuation & Estimates
Shares of USAR have gained 31.3% in the year-to-date period compared with the industry’s growth of 20.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, USAR is trading at a forward price-to-sales ratio of 8.13X compared with the industry’s average of 1.43X. USA Rare Earth has a Value ScoreValue 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 USAR's AI-Driven Approach Enhance Rare-Earth Processing?
Key Takeaways
USA Rare Earth, Inc. (USAR - Free Report) is strengthening its rare earth processing capabilities through a strategic partnership with neutral-atom quantum computing company Pasqal Holding SA (PSQL - Free Report) and Riven Systems, an AI-based solutions provider for industrial chemistry, to advance next-generation separation technology for the rare earth value chain. The partnership will use quantum machine learning and automated experimentation to identify more effective molecules for separating rare earth elements.
The collaboration is aimed at addressing a key challenge in the rare earth supply chain (outside Asia), which is separating mixed rare earth carbonate (MREC) into individual oxides. The companies plan to use Riven’s self-driving minerals separation laboratory to conduct experiments and create data for machine learning models to identify extractants that selectively bind to rare earth elements. Pasqal will use its quantum computing technology to benchmark quantum machine learning models against traditional models and help optimize extractant selection.
The technology is expected to help USAR develop smaller, cost-effective and less energy-intensive processing facilities by reducing the number of separation stages, equipment requirements and raw material consumption. It could also lower the environmental impact and carbon footprint associated with rare earth processing.
The partnership is expected to focus on feedstocks including material from USAR’s planned Round Top mine in Texas, third-party MREC and recycled swarf from the magnet manufacturing process. The companies also aim to develop an end-to-end extractant discovery process, with promising molecules tested at Riven’s laboratory and validated at USAR’s R&D facility in Colorado. The collaboration supports USAR’s efforts to build a more integrated Western rare earth supply chain while improving the efficiency and economics of its processing operations.
Notable Partnerships of USAR’s Peers
Among its major peers, MP Materials Corp. (MP - Free Report) recently signed a long-term agreement to supply gadolinium to a new U.S. aerospace and defense customer, strengthening its customer base and expanding its heavy rare earth product portfolio. The company also formed a joint venture with the U.S. Department of War and Saudi Arabia’s mining company (Maaden) in November 2025 to build a rare-earth refinery in Saudi Arabia. MP Materials will use its technical expertise to process rare-earth materials for the US, Saudi Arabia and allied manufacturing and defense industries. MP Materials’ joint venture will strengthen global supply chains, expand its refining capacity and support US-Saudi economic ties.
In August 2025, USAR’s peer, Energy Fuels Inc. (UUUU - Free Report) , signed an MOU with Vulcan Elements to supply rare earth oxides for US-based magnet production. Per the deal, Energy Fuels will provide NdPr and Dy oxides to Vulcan from its White Mesa Mill in Utah for quality verification and future long-term supply. Energy Fuels is producing high-purity, ex-China rare earth oxides at a commercial scale, supporting a domestic rare earth magnet supply chain.
USAR’s Price Performance, Valuation & Estimates
Shares of USAR have gained 31.3% in the year-to-date period compared with the industry’s growth of 20.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, USAR is trading at a forward price-to-sales ratio of 8.13X compared with the industry’s average of 1.43X. USA Rare Earth has a Value ScoreValue 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.