The company acquires Less Common Metals, a firm focused on the midstream of the rare earth value chain.
USA Rare Earth (USAR) is pursuing its goal of building a fully vertically integrated mine-to-magnet supply chain for rare earths. The company, headquartered in Stillwater, Oklahoma, now appears to be moving closer to that ambition. As announced on Monday, USAR will acquire UK-based producer Less Common Metals (LCM) for $100 million in cash plus 6.74 million USAR common shares.
LCM is regarded as the only manufacturer outside of China capable of producing both light and heavy rare earth permanent magnet alloys at scale. The company can also process recycled materials, further strengthening its strategic role in global supply chains.
“The midstream stage of metal production forms the backbone of supply chains worldwide,” said USAR Board Member Michael Blitzer. LCM’s technology is expected to be integrated into USAR’s production site in Stillwater, while existing capacities in the UK and across Europe are also slated for expansion. In May, LCM announced plans to build a new plant in France, with an estimated investment of $130 million.
Earlier this year, USAR made headlines with the successful production of a sample of dysprosium oxide. China currently holds a near-monopoly on this heavy rare earth element. Since April, it has imposed export restrictions on dysprosium and other rare earths, significantly tightening the global supply.
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