Can USAR's Stillwater Facility Power Its Next Phase of Strength?

USA Rare Earth, Inc. USAR continues to make steady progress at the Stillwater magnet manufacturing facility in Oklahoma as it moves toward commercial production. The facility is designed to manufacture Neodymium Iron Boron (NdFeB) magnets, which are critical components for defense, aerospace, automotive, industrial and other high-growth end markets. Once operational, Stillwater is expected to become one of the first large-scale NdFeB magnet plants in the United States, supporting the country’s efforts to build a domestic rare earth supply chain.

Throughout 2025, USAR concentrated on installing equipment, assembling Line 1a and preparing for commissioning in early 2026. The company expanded its operational capabilities by hiring and training engineers and technicians who will support plant operations. These efforts are expected to improve USAR’s ability to reach commercial-scale production and help it secure long-term customer contracts.

To support its progress, USA Rare Earth significantly bolstered its balance sheet through PIPE financing and warrant exercises, increasing its cash position to more than $400 million as of November 2025. Capital is being deployed toward plant upgrades, expanded magnet finishing capabilities and the completion of Line 1b, which is expected to lift total NdFeB magnet production capacity to approximately 1,200 metric tons.

In November 2025, USAR enhanced its vertical integration with the acquisition of Less Common Metals, providing a reliable source of critical metals and alloys for Stillwater. Together, these developments position the company to scale production and expand capacity in the coming quarters.

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. Because the campaign was timely and cost-effective, NioCorp is launching a second phase with up to six additional drill holes to further improve resource quality and gather data to reduce risks in the mine design.

USAR’s Price Performance, Valuation & Estimates

Shares of USAR have gained 18.2% in the past year compared with the industry’s growth of 38.1%.

From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 38.42X against the industry’s average of 16.42X. USA Rare Earth carries a Value Score of F.

The Zacks Consensus Estimate for USAR’s 2025 earnings has remained steady in the past 60 days.

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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