USA Rare Earth (NASDAQ:USAR) announced it has secured UK regulatory approval for its US$100 million acquisition of Less Common Metals (LCM), clearing the final hurdle for a potential fourth quarter closing.
Once completed, LCM will supply Neodymium Iron Boron (NdFeB) metal and strip cast alloy to USAR’s Stillwater, Oklahoma magnet facility, supporting both domestic production and global distribution.
LCM’s metals and alloys are essential for advanced magnets, semiconductors, and aerospace components, serving customers across defense, automotive, electric vehicles, industrial, and technology sectors in multiple countries.
Headquartered in Cheshire, UK, and founded in 1992, the company processes metals from both mined and recycled sources. It also holds a unique position as the only ex-China producer of both light and heavy rare earth permanent magnet metals and alloys at scale.
The acquisition was initially announced in September alongside a US$125 million equity investment from an existing shareholder to support USAR’s growth plans. Under the agreement, USAR will acquire LCM for US$100 million in cash plus 6.74 million shares of USAR common stock.
The company is developing its rare earth sintered neo magnet manufacturing facility in Stillwater, aiming to meet growing demand for NdFeB magnets in electric vehicles, renewable energy, and defense applications.
LCM’s metals and alloys will feed directly into this facility in a bid to reduce reliance on foreign sources and enhance US domestic supply capabilities.
The deal positions USA Rare Earth to play a strategic role in the reshaping of the global rare earth market, as nations—primarily the US—seek to reduce dependence on China’s tight grip on critical materials.
One of the most recent steps that the US government has taken in furtherance of this goal was a US$1.4 billion public-private partnership with Vulcan Elements and ReElement Technologies, a subsidiary of American Resources Corporation (NASDAQ:AREC)
ReElement will focus on processing recycled magnets, e-waste, and mined concentrates into high-purity rare-earth oxides, and Vulcan will convert those oxides into metals and finished magnets.
By combining LCM’s established production capacity with USAR’s US-based processing and magnet manufacturing, USAR seeks to similarly contribute to rebuilding a stable and independent domestic supply chain.
‘The combination of USAR-LCM will establish rare earth metal making in the United States for the first time in decades, as we move quickly to integrate these capabilities in Stillwater, OK to provide all of the feedstock for the buildout of our 5,000 ton magnet production facility,” said Michael Blitzer, Chairman of USAR.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
