USA Rare Earth (NASDAQ: USAR) reported second-quarter 2026 revenue of $5.8 million and approximately $1.53 billion in cash as of June 30, while making significant strides in building a fully integrated rare earth supply chain. The company finalized agreements providing access to up to $1.6 billion in U.S. Department of Commerce CHIPS Act funding, a move that highlights the strategic importance of domestic rare earth production for national security and technology sectors.
The company also announced a definitive agreement to acquire Serra Verde Group for approximately $2.8 billion, a transaction that would add the Pela Ema mine in Brazil to its portfolio. This acquisition is part of USA Rare Earth’s broader strategy to secure rare earth elements outside of China, which currently dominates global production. The company has also selected Blacksburg, South Carolina, for a new rare earth metal and magnet manufacturing operation, further expanding its domestic footprint.
During the quarter, USA Rare Earth commissioned its Wheat Ridge, Colorado, hydrometallurgical demonstration facility and produced its first commercial yttrium metal through Less Common Metals (LCM), a subsidiary that is one of the world’s leading producers of rare earth metals and alloys. These operational milestones are critical as the company works to establish a complete supply chain from mining to magnet production.
Subsequent to quarter-end, the company achieved several key milestones. It produced commercial-grade dysprosium and neodymium-praseodymium oxide samples from recycled magnet material, demonstrating its capability in sustainable rare earth processing. It also finalized agreements to acquire an approximately 13.6% stake in France-based Carester SAS and completed its acquisition of Texas Mineral Resources Corp., giving it 100% ownership and operating control of the Round Top project in Texas.
In a leadership transition, CEO Barbara Humpton will retire on Oct. 1, 2026, with Serra Verde CEO Thras Moraitis named as her successor. This change comes as the company prepares for significant growth, with expectations to complete the Round Top Definitive Feasibility Study in the fourth quarter of 2026 and reach a 600-metric-ton-per-year run-rate magnet manufacturing capacity at its Stillwater facility.
The implications of these developments are substantial. By securing CHIPS Act funding and acquiring key assets, USA Rare Earth is positioning itself to reduce Western dependence on Chinese rare earth supplies. This is particularly vital for industries such as aerospace, defense, semiconductors, and renewable energy, which rely heavily on these materials for permanent magnets and other critical components.
With its vertically integrated operations spanning the United States, United Kingdom, France, and Brazil, USA Rare Earth is building a secure, Western-aligned supply chain. The company’s progress reflects a broader push by governments and industries to ensure resilient and diversified sources of rare earth elements, which are essential for modern technology and national security.
For more information, visit USA Rare Earth’s website.
