Will USAR's Expansion Plan in France Boost ex-China Rare-Earth Supply Chains?

USA Rare Earth, Inc. USAR recently announced its intention to build a metal and alloy production plant with its acquired subsidiary, Less Common Metals (“LCM”) Europe in Lacq, France.

USAR’s 3,750 metric ton per annum (mtpa) facility will be located close to the 1,600 mtpa Caremag oxide processing unit of Carester SAS in Lacq. Notably, the Caremag oxide processing facility is expected to be commissioned later this year. Once developed, USAR’s new facility will strengthen the European rare earth supply chains and ensure stability for rare earth processing and production of metal and alloy.

With regard to this, the French government has extended its support to LCM Europe’s capital and operating requirements. This includes providing the company with approval for direct tax credits under its C3IV program and assistance for skill development programs required at LCM Europe's new facility.

Last month, LCM Europe also inked a supply agreement with Solvay and Arnold Magnetic Technologies Corp. The partnership will employ LCM Europe's expertise in metal and alloy production to provide Arnold with a reliable supply of rare-earth materials for manufacturing advanced permanent magnets.

LCM Europe’s involvement in these projects highlights the strategic significance of maintaining secure and dependable ex-China supply channels for rare-earth materials.  This further demonstrates the importance of collaboration between trusted partners for access to critical rare-earth materials for global magnet manufacturers.

Notable Partnerships of USAR’s Peers

Among its major peers, Energy Fuels Inc. UUUU signed an MOU (in August 2025) with Vulcan Elements to supply rare earth oxides for U.S.-based magnet production. Per the deal, Energy Fuels will provide NdPr and Dy oxides to Vulcan from its White Mesa Mill in Utah for quality verification and future long-term supply. Energy Fuels is producing high-purity, ex-China rare earth oxides at a commercial scale, supporting a domestic rare earth magnet supply chain.

USAR’s peer, MP Materials Corp. MP formed a joint venture with the U.S. Department of War and Saudi Arabia’s mining company (Maaden) to build a rare-earth refinery in Saudi Arabia. MP Materials will use its technical expertise to process rare-earth materials for the U.S., Saudi Arabia and allied manufacturing and defense industries. MP Materials’ joint venture will strengthen global supply chains, expand its refining capacity and support U.S.-Saudi economic ties.

USAR’s Price Performance, Valuation and Estimates

Shares of USAR have surged 51.7% in the past six months compared with the industry’s growth of 19.4%.

From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 46.63X against the industry’s average of 16.21X. USA Rare Earth carries a Value Score of F.

The Zacks Consensus Estimate for USAR’s 2025 bottom-line has remained steady over 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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