USA Rare Earth said recently, it will invest $1.2-billion to build a magnet manufacturing and rare earth metals facility in South Carolina, as it expands domestic production capacity.
Shares of the company rose 5.9% to $31.1 in morning trade.
The plant in Cherokee County is expected to produce 6 400 t/y of neodymium-iron-boron magnets and 5 000 t of rare earth metals and alloys, with commissioning targeted to begin in 2028.
USA Rare Earth said site work is expected to begin in the coming months.
The facility will complement the company’s existing magnet plant in Oklahoma, as it aims to build total domestic capacity of 10 000 t/y of magnets and metals.
The company said the magnets and metals will support industries such as defense, aerospace, semiconductors, AI and energy that rely on secure rare earth supply chains.
The investment comes as the US seeks to reduce reliance on China for rare earth materials. USA Rare Earth is
backed by the US government through a $1.6-billion debt-and-equity funding package to develop another facility in Texas.
However, the company has faced scrutiny from US lawmakers, who say the structure of the funding package could give the government “highly concerning” leverage over the company while also boosting US Commerce Secretary Howard Lutnick‘s family-run investment firm.