USAR: Bolstering US Mine-to-Magnet Supply Chain Resilience

USA Rare Earth’s acquisition of Less Common Metals puts procurement teams on notice that rare earth supply security is shifting fast.

The deal has been hailed by USAR CEO Barbara Humpton as “the missing link in America’s rare earth supply chain”.

It gives buyers a new non-China option for metals and alloys that sit at the heart of permanent magnet manufacturing across high-growth sectors.

Why this matters for procurement

LCM is the only scaled metal and alloy producer outside China, which makes the tie-up a material step toward a de-risked mine-to-magnet pathway.

For CPOs, it widens the qualified supplier base for rare earth metals and alloys, opens the door to US-origin content strategies and strengthens compliance with national security and sustainability mandates.

It also signals that total cost of ownership will increasingly factor resilience and assured delivery over pure unit price.

The ‘missing link’ in magnet-making

Speaking on CNBC Overtime on just her second day as USAR CEO, Barbara said: “This deal secures the missing link in America’s rare earth supply chain – metal- and alloy-making and strip-casting – and significantly accelerates USAR’s mine-to-magnet strategy.

“There is a global imperative now to build a mine-to-magnet supply chain for critical rare earth and the board of USA Rare Earth has this vision and it has been making bold moves.

“This is truly going to ensure that we have the first domestic supply chain outside of China for heavy rare earth metals, alloys, going all the way to permanent magnets.”

According to Barbara, permanent magnets “power the world". 

But they cannot operate without rare earth metals. She continued: “Everything from aerospace to defence, to automotive to the consumer electronics that we use… anything that moves is taking advantage of permanent magnets to drive that motion.

“This is a space that is not only large, but growing. With the introduction of physical AI and the idea that we will have more and more high-tech components that require this kind of support, we know that even China will be stretched to provide for the demand.”

“In order to make permanent magnets, you have to have strip casts: the feed stock that goes into the magnets.”

Barbara added: “It turns out LCM is that scaled supplier outside of China and particularly with access to additional feed stocks for their own work.

“LCM has spent 30 years building this critical linchpin capability – the metal making, alloy making, casting and strip casting to provide that feedstock.

“Bringing our two organisations together means that we can provide that capability, but also we can serve the broader market together.”

Price versus security in a fracturing market

The race to secure rare earths has intensified after China’s decision to cut off supply to the US and allies.

Procurement leaders weighing cost parity with China against continuity will note Barbara’s assessment: “We all got a wake-up call this year. There has been globalisation which has driven so much manufacturing overseas.

“And when China decided that they would not be providing rare earth for the magnets to the US and our trading partners, that sent a shockwave through the system.

“But we don’t need to undercut Beijing on price: what we need to do is deliver a secure and reliable supply of the very magnets that are needed to move the world.”

The transaction lands as US industrial policy accelerates domestic capabilities. In recent months, the Trump Administration has acquired stakes in key mining and technology assets, including 10% of Intel, 15% of MP Materials, 5% of Lithium Americas and an additional 5% of Thacker Pass Mine. The aim is to build US supply chains that are independent of other markets.

Barbara said: “Now is the time to invest in this market segment and build the capability.

“We are in close communication with the Administration. We applaud what the Trump Administration has done in order to make investments in this area.”

Writing on LinkedIn, USAR stated: “This acquisition is a pivotal step in delivering on our vision: building the nation’s first end-to-end mine-to-magnets supply chain, creating jobs, driving industrial revival and strengthening the US.”

The next steps for procurement

• Map bill-of-materials exposure to rare earth metals and magnets and identify single points of failure
• Engage USAR and LCM early for offtake, qualification and dual-sourcing options
• Shift sourcing scorecards to weight security of supply and ESG alongside price
• Explore long-term agreements with indexed pricing and inventory buffers to mitigate volatility