US looks to domestic rare earth startup
Startup USA Rare Earth is scheduled to float on the Nasdaq stock exchange this morning to boost its mining and processing of rare earth minerals that are key to many electronic applications.
Rare earths, used in magnets for electric vehicles and transformers, have been the subject of geopolitical negotiations in recent months, no least over deposits in Ukraine.
USA Rare Earth (USARE) is building a domestic rare earth magnet supply chain that includes the mining and processing of heavy rare earths and other critical minerals. This is based on mineral deposits above ground at Round Top in West Texas which contain at least 15 of the 17 rare earth elements, plus gallium, beryllium and other critical minerals for technology applications.
The company has successfully piloted proprietary rare earth separation technology, which it plans to deploy once mining at Round Top begins.
The reversal into a special acquisition company (SPAC) called Inflection Point Acquisition (IPXX) will raise nearly $50m. The minerals from Round Top will be processed at a NdFeB neodymium magnet facility being built in Stillwater, Oklahoma, which is expected to be operational in early 2026. This first phase is targeting a production capacity of 1,200 metric tons a year, rising to nearly 5,000 tons in future phases, to become one of the largest manufacturers in North America.
“The recent news on tariffs and rising global geopolitical tensions are a wake-up call for America – we must build a domestic rare earth mineral and magnet supply chain here at home to support a wide range of critical technologies, including our national defence,” said Joshua Ballard, CEO of USA Rare Earth. Before joining in December, he was chief financial officer at Energy Recovery, an energy efficiency technology and manufacturing company.
“I’m incredibly proud of this team as the closing of this transaction and our listing on Nasdaq is another key milestone in our evolution in building this supply chain. The additional capital raised will help propel us forward as we build one of the largest magnet facilities in North America to serve the wider neo magnet market, as well as develop our incredibly unique deposit at Round Top that, in my opinion, is a strategic national asset.”
“The public listing of USA Rare Earth marks a significant milestone for our company, our customers, and U.S. national security,” said Michael Blitzer, CEO of IPXX. “The company’s strategic vision to return the USA to domestic rare earth magnetic production is now one step closer. We look forward to working closely with our experienced management team and shareholder and government constituents to build a strategic national asset.”
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