STILLWATER, Okla., May 13, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) (the Company), an emerging global leader in rare earths, today announced its financial and operational results for the first quarter ended March 31, 2026.
Executive Commentary
"The first quarter of 2026 was a period of fundamental transformation for USA Rare Earth, defined by the successful execution of our $1.5 billion PIPE financing and the announcement of an agreement for the 100% economic consolidation of our Round Top project," said Barbara Humpton, CEO of USA Rare Earth. "These steps, alongside the commissioning of Phase 1a at Stillwater, provide additional resources and operational momentum that continue to propel USA Rare Earth's mission to become the global rare earth leader and serve the most demanding sectors of the modern economy. We have moved with precision to assemble a world-class leadership team and board capable of scaling this industrial operating system at global scale."
Ms. Humpton continued, "Our strategic momentum only accelerated in the weeks following the quarter's end. By securing a definitive agreement to acquire Serra Verde, the only scaled producer of all four magnetic rare earths outside Asia, and agreeing to enter into a strategic partnership with Carester, we are closing the loop on our integrated global value chain. Bolstered by a strong cash position and the anticipated finalization of our $1.6 billion Department of Commerce funding package, we are well-positioned to establish the partner of choice for advanced manufacturers while ensuring a secure, high-purity supply of the critical materials essential for Western industrial leadership."
First Quarter Highlights
Financial Highlights
-- The Company's cash balance as of March 31, 2026 was approximately
$1.75 billion
-- Revenues of $5.7 million
-- Net cash used in operating activities of $18.6 million
-- Capital expenditures of $38.6 million
Business Highlights
-- Proposed U.S. Government collaboration: In January 2026, the Company
announced a proposed collaboration with the U.S. Government to accelerate
domestic rare earth capabilities, and build what we believe should
represent the largest domestic heavy rare earth, critical mineral, metal
and magnet platform in the United States by 2030. The proposed
collaboration is subject to the execution of definitive documentation,
anticipated to be completed in May 2026, would provide access to $1.6
billion in funding under the Department of Commerce's CHIPS Program to
reimburse the Company for capital expenditures incurred in executing its
business plan upon the achievement of certain milestones.
-- Closed a $1.5 billion common stock private capital raise in January 2026:
In conjunction with the U.S. Government non-binding letter of intent
("LOI") the Company raised $1.5 billion through a common stock PIPE,
which closed in January 2026. This capital raise met one of the
milestones outlined in the LOI and we believe will accelerate the build
out of the Company's mine-to-magnet value chain.
-- Commissioned Phase 1A at our Stillwater magnet manufacturing facility: In
March 2026, the Company announced the commissioning of Phase 1a at its
Stillwater magnet manufacturing facility. This should enable the Company
to begin fulfilling customer orders for sintered neodymium-iron-boron
(NdFeB) permanent magnets in Q2 2026. Phase 1a is expected to ramp to a
run rate capacity of 600 metric tons per year (MTPA) by the end of Q4
2026. Phase 1b is expected to bring capacity at the Stillwater Facility
to a total of 1,200 MTPA in Q1 2027.
-- Expanded magnet pipeline across a diverse customer base: Our magnet
business continues to mature with discussions across a diverse global
customer base in the defense, industrial, mobility, healthcare, and
energy sectors. This commercial momentum is further evidenced by a series
of successful onsite vendor qualification visits from leaders in the
semiconductor, industrial motor, heavy equipment, and aerospace sectors.
-- Commenced expansion of metal & alloy capacity to meet growing demand: In
response to demand from our internal magnet manufacturing capabilities
and the opportunities presented to widen our third-party customer base,
the Company expects to expand metal making and alloy capacity at LCM's
Cheshire, UK location to 3,000 MTPA by the end of 2026. LCM has seen a
significant increase in interest for samarium-cobalt (SmCo), NdFeB and
specialty alloys, fueled by third-party magnet manufacturers largely
serving the aerospace, semiconductor, mobility, and consumer electronics
sectors. Additionally, the Company is seeing heightened demand for
specialized light rare earth, heavy rare earth and critical mineral
metals, highlighting the broad product capabilities at LCM.
-- Announced selection of Fluor Corporation and WSP Global Inc. to advance
our accelerated mining plan: Fluor and WSP Global were selected as
engineering, procurement, and construction management (EPCM) partners for
the build-out and commercialization of the Round Top deposit. The
combination of Fluor and WSP brings significant expertise across deposit
geology, mine design and planning, and processing design, engineering,
and construction. Fluor and WSP will also lead the authoring of the Round
Top Preliminary Feasibility Study $(PFS)$ that is expected to be published
by the end of Q3 2026, and the Definitive Feasibility Study $(DFS)$ that is
expected to be published in Q1 2027.
-- Announced plans to build a 3,750 MTPA plant through LCM Europe to produce
metal and alloy in Lacq, France, co-located with Carester SAS's
(Carester) Caremag oxide and recycling facility. Together, this platform
is intended to establish a comprehensive supply chain for rare earth
processing, metal and alloy production in Europe, and enhance the
Company's globally integrated rare earth value chain, from mine to
magnet.
-- Agreed to acquire Texas Mineral Resources Corporation: In March 2026, the
Company announced a definitive agreement to acquire Texas Mineral
Resources Corp. (TMRC). The transaction will establish the Company as the
sole operator and 100% economic beneficiary of the Round Top project upon
closing, subject to customary conditions. This strategic transaction will
streamline the Round Top project ownership structure and is expected to
streamline the Company's operations as it implements its accelerated
mining plan.
-- Signed mutual sales and distribution agreement with Arnold Magnetic
Technologies Corp., a subsidiary of Compass Diversified. Under this
non-exclusive partnership, the Company will offer Arnold's finished
permanent magnets produced from SmCo and NdFeB, and Arnold will offer the
Company's processed and refined NdFeB feedstock and finished magnets. The
agreement strengthens the domestic supply chain for mission-critical
applications by expanding availability of U.S.-manufactured rare earth
magnets.
-- Expanded the corporate leadership team: In March 2026, the Company
appointed Valerie Ford Jacob as Chief Legal Officer, Gregory Bowman as
Chief Global Policy Officer and Head of External Relations, and J.B. Lowe
as Vice President, Head of Investor Relations. These executives are
expected to deepen engagement with policymakers, investors, and other
stakeholders.
-- Added expertise to the Board: In March 2026, the Company announced the
addition of GlobalFoundries Executive Chairman to its Board of Directors.
Dr. Thomas Caulfield brings decades of experience across leadership and
global operations at leading technology companies, and has relevant
expertise in scaling complex, industrial platforms and strategic capacity
at the intersection of technology, manufacturing and national priorities.
Recent Developments
Subsequent to quarter-end, the Company announced the following achievements and milestones:
-- Announced investment in Carester and strategic partnership in France: In
April 2026, the Company along with InfraVia, the leading independent
European private investment platform specialized in real assets and
technology investments, announced it had entered into an investment term
sheet aiming at each of them holding approximately 12.5% equity interests
in Carester, subject to the execution of a definitive documentation and
closing conditions. We believe the platform will unite the technological
expertise, process innovation, and production capacity of USA Rare Earth,
Less Common Metals $(LCM)$, and Carester to accelerate development and
strengthen capabilities across the rare earth value chain.
-- Completed first commercial Yttrium metal production: In April 2026, the
Company announced the first commercial pour of 2N--2N5 (99%--99.5%
purity) yttrium metal through its wholly-owned subsidiary, LCM, at its
facility in Cheshire, United Kingdom. This milestone places the Company
among a limited number of producers of commercial-grade yttrium metal
operating outside of China. Yttrium is a key material in thermal barrier
coatings used on turbine blades and other high-temperature aerospace
components, where it enhances oxidation resistance and improves adhesion,
helping extend component life under intense thermal and mechanical
stress. Yttrium is also used in electronics, energy systems, lasers,
superconductors, and advanced ceramics, where its chemical stability and
high-temperature performance are essential.
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