USA Rare Earth, Inc. recently announced it has entered into a definitive agreement to acquire Less Common Metals Ltd., the world’s most established ex-China rare earth metal and alloy producer. The acquisition represents a significant acceleration of USAR’s mine-to-magnet strategy, establishing an end-to-end rare earth supply chain. LCM further secures USAR’s access to high-quality rare-earth metal and strip cast alloy for its global customers and the development of its Oklahoma magnet facility.
Under the terms of the agreement, USAR will acquire LCM for $100 million in cash and 6.74 million shares of USAR common stock.
LCM is a United Kingdom-based manufacturer of specialized rare earth metals and both cast and strip cast alloys. LCM holds a unique position as the only proven ex-China producer of both light and heavy rare earth permanent magnet metals and alloys at scale at its 67,000 square foot production facility in Cheshire, UK. It also benefits from an established supply of raw materials outside of China. Metals and alloys produced include Samarium, Samarium Cobalt, Neodymium Praseodymium, Dysprosium, Terbium, Yttrium, Gadolinium, and other critical rare earth metals and metal alloys. LCM is one of the few companies capable of processing metal oxide feedstocks from both mined and recycled sources.
“The acquisition of LCM is a bold and transformative leap forward for our Company and the domestic rare earth industry,” said Michael Blitzer, Chairman of USAR. “Midstream metal making is the linchpin of the global supply chain and LCM is the only proven ex-China producer of rare earth metal, alloys, and strip casting at scale. Over three decades, LCM has brought proven expertise and world-class capability and is the sole Western provider of critical defense materials such as Samarium Cobalt metal.”
Blitzer continued, “The combination of USAR-LCM will establish rare earth metal making in the United States for the first time in decades, as we move quickly to integrate these capabilities in Stillwater, OK to provide all of the feedstock for the buildout of our 5,000 ton magnet production facility. Our ambition is also to expand LCM’s capabilities in both the United Kingdom and Europe, supporting the broader ex-China industry with a wide range of defense and industrial applications.”
“This transaction completes our decades-long vision to establish an integrated rare earth supply chain,” said Grant Smith, Chairman of LCM. “USAR will be uniquely positioned in the ex-China rare earth magnet supply chain with both a large magnet facility in Oklahoma and mining rights to the Round Top Deposit of heavy rare earths in Texas. This business combination immediately positions the combined company to be a leader in the global rare earth industry, the only one with a true mine-to-magnet offering. We will be able to provide customers an end-to-end solution that is unrivalled outside of China. I’m excited to partner with USAR to further scale quickly and realize our ambitions.”
As a result of this transaction, LCM will be able to continue to expand and serve its global customer base with a broad portfolio of rare earth and critical metals and alloys, while also supplying Neodymium Iron Boron (NdFeB) metal and strip cast alloy to USAR’s Stillwater, Oklahoma magnet facility when it commences production. LCM’s metals and alloys are essential to the manufacturing of advanced magnets and the company supplies customers across defense, automotive, electric vehicle, industrial, and other sectors in the U.S., UK, France, Germany, Japan, and Taiwan.
Compelling Strategic Rationale
- Access to Key Commercial, Industry and Government Relationships: Recently, LCM announced a planned expansion into France with anticipated support from the French government under the 2030 France investment plan. LCM was also recently awarded a grant from the DLA Troop Support, Philadelphia, PA and the Defense Logistics Agency, Ft. Belvoir, VA to expand its Samarium metal production capacity at its UK facility. LCM brings a strong network of leading and long-term customers, including key defense contractors, automotive manufacturers, and top global magnet manufacturers across Europe and the United States. LCM also maintains established government relationships with the United States, United Kingdom, France, Australia, and Japan, as well as global relationships with rare earth industry players, including raw feedstock providers that enable enhanced reliability of materials.
- Brings Critical Rare Earth Metal and Metal Alloy Production and Strip Casting to USAR’s Platform: The acquisition secures a vital link in the end-to-end rare earth supply chain that USAR is developing by securing access to high-quality NdPr rare-earth metal alloys and strip cast for its magnet making facility in Oklahoma. High-quality rare-earth strip cast alloy is essential to magnet production. Without it the world will be unable to scale magnet production outside of China. With over three decades of expertise, LCM is ideally positioned to supply the world’s rapidly rising ex-China demand for rare earth metal alloys, providing USAR with a platform for growth in a market where demand is expected to outpace supply.
- Provides USAR with Unique Assets and Competitive Advantages: LCM’s position as the only proven rare earth alloy and metal manufacturer and supplier of scale not under China’s control gives USAR a structural advantage over its peers in the magnet industry. USAR’s ability to now control its own rare earth metal inputs, as well as ensure that investments are made to support the growth of its magnet business, will enable the Company to deliver a lower risk and lower cost solution that is unique to the industry.
- Adds Important Capability to Process Recycled Materials: LCM closes the loop for USAR’s in-house processing of recycled rare earths. LCM has the ability to process recycled rare earth oxides, which will enable USAR to reuse end of life magnets and its own swarf generated during magnet production. This will allow for a more sustainable manufacturing process while also providing access to alternative low cost sources of feedstock.
The transaction is expected to close in the fourth quarter of calendar year 2025, subject to customary closing conditions, including regulatory approval in the UK.
In another development by LCM, in May it announced that it has chosen France to further develop partnerships and facilitate a Western World supply chain.
LCM is proposing an investment of 110 M€ for a project to establish a plant to produce both light and heavy rare earth metals and alloys, creating 100 to 140 jobs. The commune of Lacq in southwestern France is currently being considered as the location for the plant with a final decision due shortly.
LCM is based in the UK and has more than 30 years of experience in the Rare Earth Industry. The company holds a unique position as one of the few non-Chinese producers of rare earth metals and alloys and plays a crucial role in the midstream of the rare earth supply chain, providing essential materials for permanent magnets used in various high-tech applications.
This initiative reflects the company’s strategic decision to invest in France as a hub for advancing partnerships and strengthening the rare earth supply chain within the Western world. By establishing a presence in France, the company aims to support regional collaboration, enhance supply chain resilience, and contribute to the development of critical materials essential for future technologies.
LCM is involved in a wide range of European and UK-funded projects that drive innovation in product and process development. These collaborative projects position LCM at the forefront of emerging technologies and reinforce the company’s ongoing contribution to the European academic, research, and development landscape. “Choosing France for this strategic expansion marks an important milestone in our mission to develop a robust and complementary rare earth supply chain for the Western World,” said Grant Smith, Chairman of Less Common Metals.
“With over three decades of experience in rare earth metals and alloys, LCM is committed to deepening our partnerships across Europe and reinforcing regional supply chain resilience. France’s strong support, robust industrial base, collaborative research environment, and strategic positioning within Europe align closely with our vision to invest in critical materials development and build alternative supply chains.”
About France 2030 investment plan
The France 2030 investment plan represents a strategic commitment by the French government to position the nation at the forefront of global innovation and industrial transformation. With a dedicated budget of €54 billion, the plan focuses on accelerating the development of critical technologies and sustainable industries, including artificial intelligence, green energy, quantum computing, and advanced healthcare. By fostering public-private collaboration and supporting high-impact projects, France 2030 is driving long-term competitiveness, job creation, and industrial resilience across the national economy.
See www.usare.com and https://lesscommonmetals.com/ for more information.
