Al Root

USA Rare Earth is becoming more than a miner -- it is transforming into a critical player in helping the U.S. break China's dominance in rare earth elements.

Thursday, USA Rare Earth, which is developing a rare earth mine in Texas, announced that its rare-earth magnet-making facility in Stillwater, Okla., is operational.

To make magnets, the metallic elements are milled into a fine powder, pressed into a block, sintered with heat, machined, coated to prevent corrosion, and then magnetized using a strong magnetic field to align the magnet's magnetic domains. For now, USA Rare Earth will use acquired rare earth materials to make magnets.

Shares of USA Rare Earth were down 3.7% in midday trading at $16.02. The news about the Oklahoma plant isn't likely the reason. Instead, it's a risk-off day for the market. The S&P 500 was down 1.1% and oil prices were higher again amid the ongoing conflict in the Middle East. Shares of MP Materials, the largest rare earth miner in the Western Hemisphere, were down 3.3%.

MP, along with a handful of other companies, also makes magnets. Domestic production can meet roughly 10% of total magnet demand, according to recent estimates, and that share could be north of 30% by 2028.

Declines still leave USA Rare Earth stock up almost 180% over the past 12 months. The sector has been boosted by the U.S. government's goal to reduce dependence on Chinese supply. Most notably, the Defense Department signed a blockbuster deal with MP in July that included capital, price floors, and offtake agreements. In January, USA Rare Earth signed a deal with the Commerce Department tied to $3.1 billion in funding.

China controls about 85% of global rare earth processing capacity and has used its near-monopoly position in recent trade negotiations, threatening export restrictions.

That can upend a host of manufacturing industries. Although the dozen-plus rare earth elements used globally are used in relatively small amounts, they end up in everything from smartphones to fighter jets. Rare earths have their biggest application in magnets.

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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March 26, 2026 15:54 ET (19:54 GMT)

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