USA Rare Earth acquires Less Common Metals to accelerate its mine-to-magnet strategy

USA Rare Earth (USAR) has entered into a definitive agreement to acquire UK-based rare earth metal and alloy producer Less Common Metals (LCM).

The acquisition 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 deal, USAR will acquire LCM for $100 million in cash and 6.74 million shares of USAR common stock. The transaction is expected to close in the fourth quarter of 2025.

LCM produces 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. The company is one of the few producers capable of processing metal oxide feedstocks from mined and recycled sources.

LCM closes the loop for USAR’s in-house processing of recycled rare earths. USAR will be able to reuse end-of-life magnets and its own swarf generated during magnet production, providing access to alternative low-cost sources of feedstock.

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 starts production. LCM’s metals and alloys are used in the manufacturing of advanced magnets for customers across EV, automotive, industrial, defense and other sectors in the US, UK, France, Germany, Japan and Taiwan.

LCM has previously announced a planned expansion into France supported by the French government under the 2030 France investment plan.

“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,” said Michael Blitzer, Chairman of USA Rare Earth. “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, Oklahoma 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.”

Source: USA Rare Earth

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