Why Rare Earths, Why Now
The geopolitical reality driving this investment is stark. China controls over 90% of global rare earth processing and 94% of permanent magnet manufacturing. These materials are embedded in virtually everything that matters to modern economies and national defense.
Rare earths are critical components in:
- Electric vehicle motors and wind turbines
- Fighter jets and missile guidance systems
- Smartphones and consumer electronics
- AI data center hardware
China has been actively weaponizing this dominance. In April 2025, Beijing slapped export controls on seven heavy rare earth elements.
The result was immediate: European rare earth prices shot up sixfold, automakers across the U.S., Europe, and Asia scrambled for supply, and some factories were forced to shut down entirely due to magnet shortages.
Then in October 2025, China escalated further. Five more elements were added to the restricted list. Extraterritorial controls were introduced, meaning even products made outside of China using Chinese rare earth materials or technology now require export licenses.
Beijing also implemented a 50% rule—if a company is 50% or more owned by a military end-user or restricted entity, it faces automatic denial.
The message was clear: China holds a chokehold over one of the most strategically important material categories on the planet.
Why the Government Chose USAR
Not all rare earths are created equal. There are two categories: light and heavy. Light rare earths are already being produced domestically—MP Materials handles that in California, and the government gave them $400 million. That box is checked.
Heavy rare earths are the problem. These are the elements that go into the most advanced military equipment, including F-35 fighter jets. These are the ones China controls most tightly, and these are the ones America desperately needs.
What makes USAR unique:
- The company owns Round Top, a massive deposit in West Texas that represents the largest known U.S. source of heavy rare earths—with enough minerals to last over 100 years
- The deposit also contains lithium, gallium, and other valuable materials, making the operation potentially far more profitable
- USAR is building vertically integrated infrastructure: a mine in Texas, a processing facility in Colorado, and a magnet plant in Oklahoma
- No other U.S. company offers this "mine-to-magnet" capability entirely on American soil
The government didn't pick USAR randomly. The company fills a critical gap in the domestic supply chain that no other player currently addresses.
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