USA Rare Earth Acquires Less Common Metals; Risks Loom

USA Rare Earth Inc. (Nasdaq: USAR) cleared regulatory approval to acquire UK-based Less Common Metals (LCM), a rare-earth metals and alloys producer that supplies defense, EV, semiconductor and aerospace customers outside China.

The deal advances USAR’s stated mine-to-magnet strategy, linking LCM’s downstream metallurgical capability to the company’s planned Stillwater NdFeB magnet plant in Oklahoma (first production targeted early 2026) and the Round Top rare-earth deposit in Texas (Pre-Feasibility Study pushed to H2 2026).

But the financial and technical profile remains speculative. USAR is pre-revenue with roughly $258 million cash, negligible debt and a disclosed going-concern risk, while trailing twelve‑month losses equal about $2.23 per share and EBITDA near negative $39 million. The market currently values the company at roughly $2.36 billion despite unproven upstream feedstock and complex scale-up requirements.

Material risks include unproven ore supply and heavy‑REE separation at Round Top, plus technology and integration challenges at Stillwater and within LCM’s legacy customer base. The stock has rallied over the past year but trades well below prior highs, with notable short interest and a tight float that can amplify volatility.

For now, USAR is best characterized as a high‑beta, development‑stage play on U.S. magnet and critical‑metals supply chains rather than a matured operating producer.