USA Rare Earth (Nasdaq: USAR) has announced a $1.2 billion investment to build a large-scale rare earth magnet manufacturing and refined metals facility in Cherokee County, South Carolina. The project will be located at Bailey Industrial Park in Blacksburg and represents a major step toward building a fully domestic mine-to-magnet supply chain in the United States.
The new facility is designed to produce up to 6,400 tonnes per year of sintered neodymium-iron-boron (NdFeB) permanent magnets and 5,000 tonnes per year of strip-cast metal and alloy. These materials are essential components for electric vehicles, wind turbines, semiconductors, defense systems and data center technologies.
Site preparation for the project is expected to begin in the coming months, with full commissioning targeted for 2028. Once operational, the plant is projected to create approximately 490 high-skilled jobs, contributing to regional economic development and advanced manufacturing growth in South Carolina.
The investment is part of USA Rare Earth’s broader strategy to establish a vertically integrated supply chain spanning mining, processing and magnet production. The company’s approach includes upstream assets such as the Round Top rare earth project in Texas, alongside planned expansions in domestic refining and international resource development.
Executives at the company emphasized the strategic importance of strengthening U.S. capabilities in rare earth magnet production, an area currently dominated by global supply chains. The project is expected to play a role in reducing reliance on foreign suppliers and improving supply security for critical industries.
The development also reflects wider momentum in the United States’ critical minerals sector, where companies are increasingly investing in domestic production capacity supported by government incentives and rising demand from clean energy and advanced technology industries.
Once completed, the South Carolina facility is expected to become a key part of the country’s emerging rare earth manufacturing network, helping to secure long-term supply resilience for essential industrial and energy technologies.
