Can the Stillwater Facility Expansion Fuel USAR's Long-Term Growth?
USA Rare Earth, Inc. USAR is advancing its growth strategy with the successful commissioning of Phase 1a of its commercial magnet production line at its Stillwater, OK, facility. The milestone marks the company’s entry into commercial-scale magnet manufacturing and positions it to begin supplying sintered neodymium-iron-boron (NdFeB) permanent magnets to customers in the second quarter of 2026.
Over the past year, USAR completed the installation and assembly of key production equipment and prepared the Stillwater site for commercial operations. The company also expanded its workforce, adding skilled engineers and technicians to support production ramp-up and future customer commitments.
The successful commissioning demonstrates the facility’s ability to manage a complex, multi-step manufacturing process at commercial scale. The process converts rare earth and metallic elements into ultra-fine powder, which is refined through jet milling in a controlled environment before being shaped, coated and magnetized into NdFeB permanent magnets. NdFeB magnets are critical components in industries such as defense, aerospace, automotive and advanced technologies. Demand for these high-performance magnets continues to increase as manufacturers seek reliable domestic sources of supply.
Phase 1a is expected to reach an annual run-rate production capacity of 600 metric tons by the end of 2026. The planned addition of Phase 1b is projected to double the Stillwater facility’s total capacity to 1,200 metric tons annually by the first quarter of 2027.
As production scales up, the Stillwater facility is set to play an important role in strengthening the U.S. rare earth magnet supply chain. The increased manufacturing capacity and growing demand for domestically produced magnets could provide USAR with additional revenue opportunities and support its long-term growth prospects.
Snapshot of USA Rare Earth’s Peers
Among its major peers, 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 other peer, 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 Price Performance, Valuation & Estimates
Shares of USAR have gained 71.8% in the past year compared with the industry’s growth of 41.8%.
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From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 66.69X against the industry’s average of 14.69X. USA Rare Earth carries a Value Score of F.
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The Zacks Consensus Estimate for USAR’s 2026 earnings has decreased over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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