USA Rare Earth Goes Public, Aims to Boost US Rare Earth Supply

USA Rare Earth, Inc. has merged with Inflection Point Acquisition Corp. II and is now trading on Nasdaq under the ticker "USAR" as of March 14.

The company is working to create a domestic rare earth magnet supply chain, with the goal of supplying rare earth magnets and heavy rare earths for critical US technologies.

In a press release, CEO Joshua Ballard points out, "Recent tariffs and global tensions show we need to build our own rare earth mineral and magnet supply chain here in the US. This is crucial for many critical technologies, including national defense."

USARE is building a neo magnet facility in Stillwater, Oklahoma, set to start operations in early 2026. The first phase aims to produce 1,200 metric tons per year, with plans to grow to almost 5,000 tons annually in later phases.

In 2022, the Stillwater Economic Development Authority approved a $7 million incentive package for the company which was also set to receive assistance from the State of Oklahoma through the Governor’s Rapid Closing Fund and the Oklahoma Department of Commerce Quality Jobs program.

In January the company successfully produced their first batch of sintered permanent rare earth magnets at the Stillwater facility.

The company owns mining rights to the Round Top Mountain deposit in West Texas. This site contains at least 15 of the 17 rare earth elements, plus other important tech minerals like gallium and beryllium.

USARE's magnets and rare earth minerals are used in many industries, including semiconductors, defense, robotics, electric vehicles, and energy transition.

The company has tested its own rare earth separation technology, which it plans to use once mining starts at Round Top.

Stockholders approved the merger on March 10, which closed on March 13. The deal included an $8 million increase in PIPE investment, bringing the total from IPXX's affiliates and other pre-funded PIPE investors to nearly $50 million.

• A Private Investment in Public Equity (PIPE) is a private investment round that provides additional capital to the Special Purpose Acquisition Company (SPAC). This funding is often used to entice the company being acquired and ensure sufficient funds are available to complete the merger.

Michael Blitzer, CEO of IPXX, says, "We're now one step closer to bringing rare earth magnetic production back to the US."

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