Does Commissioning of Stillwater Facility Mark a Turning Point for USAR?

USA Rare Earth, Inc. USAR has marked a significant milestone with the commissioning of Phase 1a of its commercial magnet production line at its Stillwater facility in Oklahoma. This development positions the company to begin fulfilling customer orders for sintered neodymium-iron-boron (NdFeB) permanent magnets starting in the second quarter of 2026.

It is worth noting that in 2025, USAR installed equipment, assembled Line 1a and prepared the facility for commissioning in 2026. The company also expanded its workforce by hiring and training engineers and technicians to support operations, steps aimed at reaching commercial-scale output and securing long-term customer agreements.

The commissioning confirms the facility’s ability to operate a complex, multi-step manufacturing process at a commercial scale. The production process involves the transformation of rare earth and metallic elements into ultra-fine powder, refining it through jet milling in a controlled environment and then shaping, coating and magnetizing the material into NdFeB magnets. These high-performance magnets are used in defense, aerospace, automotive and other high-growth industries.

Phase 1a is expected to ramp up to an annual run rate capacity of 600 metric tons by the end of 2026. In the quarters ahead, the addition of Phase 1b is expected to double the Stillwater facility’s total capacity to 1,200 metric tons per annum by the first quarter of 2027.

Once fully operational, the Stillwater facility is expected to be one of the first large-scale NdFeB magnet plants in the United States, helping strengthen the country’s domestic rare earth supply chain. With demand for high-performance magnets rising, this milestone helps USAR tap new opportunities and support its long-term growth.

Snapshot of USA Rare Earth’s Peers

Among its major peers, Trilogy Metals Inc. TMQ continues to make steady progress at the Ambler mining district. Although Trilogy is not yet in production, it is taking a step ahead with Ambler Metals LLC, which is a joint venture with South32 Limited. In July 2025, Trilogy began a multi-year core re-boxing program to protect drill core for long-term future use.

USAR’s other peer, NioCorp Developments Ltd. NB, is working to move its Elk Creek Project in Nebraska closer to production. In August 2025, NioCorp completed its first drilling program at the Elk Creek Project on schedule and within budget. In February 2026, NioCorp started construction of the main underground access for its Elk Creek Critical Minerals Project in southeast Nebraska.

USAR’s Price Performance, Valuation & Estimates

Shares of USAR have gained 127.7% in the past year compared with the industry’s growth of 51.2%.

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From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 42.95X against the industry’s average of 13.86X. USA Rare Earth carries a Value Score of F.

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The Zacks Consensus Estimate for USAR’s 2026 earnings has decreased over the past 60 days.

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The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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