USAR Deal Gives US a Rare Earth Supply Chain to Rival China
US efforts to secure its rare earth metal supply advance with USA Rare Earth’s acquisition of Less Common Metals (LCM).
The move is key to an independent domestic supply chain, as LCM is the only scaled metal and alloy producer of its kind outside China.
The deal accelerates USA Rare Earth’s (USAR) mine-to-magnet strategy, a plan for a self-sufficient process for producing essential magnetic components. This comes amid rising global pressure to secure reliable rare earth metals, which are vital for high-tech industries like AI and defence.
USAR CEO Barbara Humpton calls the acquisition “the missing link in America’s rare earth supply chain”.
Forging a US mine-to-magnet supply chain
The integration of LCM is a key moment for the American rare earth sector. Speaking just two days into her role as CEO, Barbara Humpton explains the deal’s strategic importance.
“This deal secures the missing link in America’s rare earth supply chain – metal- and alloy-making and strip-casting – and accelerates USAR’s mine-to-magnet strategy,” she says.
Developing a complete domestic supply chain is a global priority. Barbara notes a “global imperative” to build this capability and praises the USAR board for its decisive moves.
She adds, “This is truly going to ensure that we have the first domestic supply chain outside of China for heavy rare earth metals, alloys, going all the way to permanent magnets.”
LCM’s established capabilities are crucial for converting raw materials into components for advanced manufacturing.
The linchpin for permanent magnet production
Permanent magnets are essential in many modern technologies, with Barbara stating they “power the world.” Their production depends entirely on a steady supply of rare earth metals.
She explains their wide application, from aerospace and defence to automotive and consumer electronics, noting that “anything that moves takes advantage of permanent magnets to create that motion.”
Demand for these components is set to grow, partly due to emerging technologies like physical AI. Barbara believes that even China will be “stretched to provide for the demand.”
To create permanent magnets, manufacturers need strip casts as feedstock. “It turns out LCM is that scaled supplier outside of China,” Barbara says.
“LCM has spent 30 years building this critical linchpin capability – the metal making, alloy making, casting and strip casting to provide that feedstock,” she continues. “Bringing USA Rare Earth and LCM together means that we can provide that capability, but also we can serve the broader market together.”
Securing the supply chain amid global tensions
The need to diversify rare earth sourcing is heightened by geopolitical factors, particularly China’s decision to restrict its supply to the US and its allies. This shifts the focus from cost to supply chain resilience.
“We all get a wake-up call this year,” Barbara explains, referencing the “shockwave” sent through the system when China restricts its rare earth supply.
The strategic response is not to compete on cost but to guarantee availability. “What we need to do is deliver a secure and reliable supply of the very magnets that are needed to move the world,” she states.
This strategy aligns with US government efforts to onshore critical supply chains. The Trump Administration acquires shares in key mining and technology firms, including:
- Intel – 10%
- MP Materials – 15%
- Lithium Americas – 5%
- Thacker Pass Mine – additional 5%.
These investments highlight a push for industrial independence. “Now is the time to invest in this market segment and build the capability,” Barbara says, adding that USAR is in “close communication with the Administration.”
On LinkedIn, USAR adds: “This acquisition is a key step in delivering on our vision: building the nation’s first end-to-end mine-to-magnets supply chain, creating jobs, driving industrial revival, and strengthening the US.”
