USA Rare Earth Expands Domestic Rare Earth Supply Chain with $1.2B South Carolina Facility

Event summary

  • USA Rare Earth will build a $1.2B rare earth metal and magnet manufacturing facility in Cherokee County, South Carolina, creating 490 high-skill jobs.
  • The facility will target production of 6,400 metric tons per year of NdFeB magnets and 5,000 metric tons per year of heavy rare earth metals.
  • Combined with its Oklahoma facility, USA Rare Earth aims for 10,000 metric tons per year of domestic production capacity by 2028.
  • The site was chosen for its incentives, skilled workforce, and proximity to defense and aerospace customers.

The big picture

This expansion strengthens USA Rare Earth's position in the U.S. rare earth supply chain, reducing dependence on Chinese imports ahead of the 2027 defense sector restriction. The move aligns with broader government efforts to secure critical mineral production for national security and technological competitiveness. With $1.2B in planned investment, the company is positioning itself as a key player in the global rare earth market.

What we're watching

Execution Risk
Whether USA Rare Earth can meet its 2028 commissioning timeline amid supply chain and workforce challenges.
Government Financing
How pending U.S. government financing will impact the company's expansion plans and financial flexibility.
Market Demand
The pace at which defense and aerospace sectors will adopt domestically produced rare earth magnets.