USA Rare Earth, Inc. (NASDAQ: USAR) has announced plans to acquire the remaining 51% ownership in the Round Top rare earth deposit in Texas, consolidating full control of the U.S.-based resource. The move strengthens America's domestic supply chain for critical minerals essential to defense and clean energy technologies.
- USA Rare Earth (USAR) to acquire the remaining 51% stake in Round Top deposit for $210 million
- Round Top holds 1.3 million tons of rare earth oxide (REO) at 1.2% grade
- Full ownership enables development of a U.S.-based mine-to-magnet supply chain
- Targeted production start: 2028, aligning with national critical minerals strategy
- USAR shares rose 18% in pre-market trading post-announcement
- Part of broader U.S. effort to reduce reliance on China for rare earth materials
USA Rare Earth, Inc. (USAR) has entered into a definitive agreement to purchase the remaining 51% stake in the Round Top rare earth deposit from its joint venture partner, marking a pivotal step toward establishing a fully domestic mine-to-magnet supply chain. The acquisition, valued at approximately $210 million, brings the company’s total ownership of the asset to 100%, following its existing 49% holding. Round Top, located in Hudspeth County, Texas, is among the largest known rare earth deposits in the United States, with estimated reserves of 1.3 million tons of rare earth oxide (REO) at a grade of 1.2% REO. The transaction underscores the growing strategic importance of securing critical minerals within North America, particularly as the U.S. government prioritizes reducing reliance on China for rare earth processing and manufacturing. Rare earth elements such as neodymium and praseodymium are vital for permanent magnets used in electric vehicles, wind turbines, and advanced defense systems like radar and missile guidance. With the U.S. currently importing over 80% of its rare earth materials, domestic production is seen as a national security imperative. The deal is expected to accelerate the development of a processing facility at the site, with initial production targeted for 2028. The move is also likely to bolster investor confidence in U.S.-based critical minerals projects, potentially driving increased capital flows into the sector. Shares of USAR have reacted positively, rising 18% in pre-market trading following the announcement, while broader energy and materials indices, including XLE and CL=F, showed modest gains reflecting growing appetite for resource resilience plays. The acquisition positions USA Rare Earth as a key player in the emerging U.S. rare earth ecosystem, with potential implications for supply chain reconfiguration across defense contracting, renewable energy, and semiconductor manufacturing. Strategic partners, including the U.S. Department of Defense and the Department of Energy, have previously expressed support for domestic rare earth development through funding and policy incentives.