- USA Rare Earth will invest $1.2B to build a magnet manufacturing and metals plant in Blacksburg, South Carolina, aiming for a 2028 launch.
- The project will create 490 jobs, with significant funding and equity from the US government under the CHIPS Act program.
- This move advances rare earth independence and US manufacturing capacity, aiming to reduce reliance on China for critical materials.
USA Rare Earth announced plans to invest $1.2B in a new magnet manufacturing and rare earth metals facility in Blacksburg, South Carolina. The company is targeting a 2028 opening, with site work expected to begin within months. Supported by major CHIPS Act funding, the initiative will create 490 jobs and establish a new domestic link in the rare earth supply chain. The federal government will become one of USA Rare Earth’s largest shareholders as part of the funding package.
Rare Earth Supply Chain Independence Gains Momentum
Securing critical materials for manufacturing and defense has become a priority for US industrial policy, especially as China dominates rare earth exports. Founded in 2019, USA Rare Earth aims to create a fully domestic “mine-to-magnet” supply chain. The company has expanded globally, acquiring Serra Verde Group in Brazil for $2.8B and advancing projects in the UK and France. Its latest investment in South Carolina is part of a broader strategy to ensure rare earth sourcing and processing remain within US allies’ control, per the company and Department of Commerce.
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The Details
Sited at Bailey Industrial Park, the new facility will produce 6,400 metric tons of sintered neodymium-iron-boron (NdFeB) magnets annually. It will also manufacture 5,000 metric tons of rare earth metals and alloys each year. Operations will range from metal refining to advanced magnet manufacturing, supporting industries from defense and aerospace to semiconductors and energy. USA Rare Earth signed agreements with the Department of Commerce to access up to $1.6B in funding and loan capacity. The funding will be distributed in phases tied to project milestones. The government will receive 16.1M shares and nearly 18M additional warrants, making it a key company stakeholder. South Carolina’s Coordinating Council for Economic Development approved job credits to support the project, and Duke Energy will supply utilities.
CHIPS Act Boosts Domestic Magnet Production
USA Rare Earth’s South Carolina factory reflects a broader reshoring trend driven by supply chain security and CHIPS Act incentives. The plant will join an expanded Oklahoma facility, targeting 10,000 metric tons of NdFeB magnets annually. China produces more than 80% of global rare earth magnets, highlighting the project’s strategic importance.
Why It Matters
This investment directly aligns with federal objectives to secure supply chains for defense, clean energy, and tech sectors. According to the Department of Commerce, the partnership represents the largest of its kind in the rare earth industry. Its success could help mitigate future disruptions or geopolitical risk tied to Chinese-dominated supply. USA Rare Earth’s model is attracting private investment as well, with a $1.5B fundraising round completed in January.
What’s Next
Expect USA Rare Earth to proceed with engineering and procurement through 2026, aiming to start operations in South Carolina by 2028. Watch for upcoming CHIPS Act disbursements, potential expansions at the Oklahoma site, and further upstream development at the Round Top mine in Texas. The success of this initiative may influence future federal investment and the pace of US independence in critical mineral supply.
