Can the Stillwater Facility Anchor USA Rare Earth's Growth Trajectory?

USA Rare Earth, Inc. USAR is progressing with development of its Stillwater magnet manufacturing facility in Oklahoma as it moves closer to commercial production. The site will manufacture Neodymium Iron Boron (NdFeB) magnets for defense, aerospace, automotive and other fast-growing end markets. Once operational, Stillwater is expected to rank among the first large-scale NdFeB magnet production facilities in the United States, reinforcing domestic rare earth supply-chain capabilities.

Throughout 2025, USAR concentrated on equipment installation, assembly of Line 1a and preparations for commissioning in early 2026. The company also expanded its workforce, recruiting and training engineers and technicians to support operations, with the goal of achieving commercial-scale output and securing long-term customer contracts.

To support its growth plans, USAR boosted its balance sheet through PIPE financing and warrant exercises, lifting its cash position to more than $400 million as of November 2025. The capital is being deployed toward plant enhancements, expanded magnet finishing capabilities and completion of Line 1b, which is expected to raise total NdFeB magnet production capacity to approximately 1,200 metric tons.

In November 2025, the company further advanced its vertical integration strategy with the acquisition of Less Common Metals, gaining access to essential metals and alloys for the Stillwater facility. These initiatives position USAR to increase production and expand capacity in the quarters ahead.

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 75.1% in the past year compared with the industry’s growth of 63.2%.

From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 63.44X against the industry’s average of 16.47X. USA Rare Earth carries a Value Score of F.

The Zacks Consensus Estimate for USAR’s 2026 earnings has increased 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research