According to a report by Mining.com, USA Rare Earth (USARE) achieved a significant breakthrough this week by successfully producing the first batch of rare earth permanent magnets at a new plant under construction in Stillwater, Oklahoma.
This production facility, named the "Innovation Laboratory," is part of USARE's integrated rare earth permanent magnet supply chain and is touted as the "only scalable sintered magnet production system in the Western Hemisphere."
The company also controls the Round Top deposit in West Texas, which is rich in heavy rare earth elements such as dysprosium and terbium, as well as rare and dispersed elements like gallium and beryllium. Round Top is currently in the engineering phase and is expected to begin production in 2025/2026.
Meanwhile, the company is also utilizing rare earth raw materials supplied by other vendors. To date, it has reached agreements with companies including Australian Strategic Materials and Americas Resources.
In a press release on Tuesday, USARE stated that once the Innovation Laboratory is fully put into use, it will produce prototype rare earth magnets for the company, advance customer sales, manage product quality, and drive innovation in rare earth magnet production.
The laboratory was originally planned to begin production in 2024, with an initial annual output of 1,200 mt, eventually reaching its designed capacity of 4,800 mt. Its main equipment was repurposed from Hitachi's former magnet production plant in North Carolina.
The company had previously planned to invest over $100 million in building production facilities in Oklahoma.
"We will complete the construction of the new Innovation Laboratory in the coming months. This laboratory has already demonstrated its potential, helping us achieve a critical step in the company's development," said Joshua Ballard, CEO of USARE, in the press release.
"Our manufacturing plant will soon customize products according to customer requirements, expand sales, and achieve the goal of commercial production by 2026."
