US Rare Earth and NioCorp: Competing Paths to Critical Minerals

Two North American critical-minerals developers are progressing on different timelines as demand for EV, defense and clean-energy materials grows.

USA Rare Earth is advancing its Stillwater magnet facility in Oklahoma toward commissioning in early 2026 to produce NdFeB magnets used in automotive, defense and aviation applications. The company has been installing equipment, assembling Line 1a and recruiting technical staff while funding expansion through PIPE financing and warrant exercises that lifted cash to over $400 million by Q3 2025. The November 2025 acquisition of Less Common Metals adds a feedstock source and supports planned capacity increases—Line 1b would raise total NdFeB output to roughly 1,200 metric tons. However, the company remains pre-revenue and faces rising operating costs; SG&A surged to $11.4 million in Q3 2025.

NioCorp is advancing the Elk Creek project in Nebraska, securing board approval for a Mine Portal, additional land for surface processing and an agreement with the U.S. Department of Defense to support engineering and drilling. The company raised about $60 million but estimates roughly $1.1 billion is needed to reach production, prompting potential dilution and an Export-Import Bank loan application.

Shares have risen recently (USAR ~+26%, NB ~+16%), yet both firms trade at negative forward P/Es and remain execution- and financing-dependent.