USA Rare Earth, Inc. (NASDAQ: USAR) reported second-quarter 2026 revenue of $5.8 million and approximately $1.53 billion in cash as of June 30, positioning the company to execute on its ambitious plans to build a fully integrated rare earth and permanent magnet value chain. The company made significant strides during the quarter, finalizing agreements that provide access to up to $1.6 billion in U.S. Department of Commerce CHIPS Act funding, announcing a definitive agreement to acquire Serra Verde Group for approximately $2.8 billion, and selecting Blacksburg, South Carolina, for a new rare earth metal and magnet manufacturing operation.
These developments underscore the company's commitment to reducing U.S. reliance on foreign sources for critical minerals, which are essential to national security and the transition to clean energy. The CHIPS Act funding, in particular, is a pivotal element in financing the expansion of domestic processing capabilities. The acquisition of Serra Verde, a Brazilian mining company, would secure a significant source of heavy rare earth elements, including dysprosium and terbium, which are crucial for high-performance magnets used in electric vehicles, wind turbines, and defense applications.
During the quarter, USA Rare Earth also commissioned its Wheat Ridge, Colorado, hydrometallurgical demonstration facility, a key step in developing a domestic supply chain for rare earth oxides. The company produced its first commercial yttrium metal through its subsidiary Less Common Metals, and received funding commitments supporting its Round Top project in Texas and domestic rare earth processing capabilities. These achievements highlight the company's progress in moving from mining to metal-making and magnet production.
Subsequent to quarter-end, USA Rare Earth produced commercial-grade dysprosium and neodymium-praseodymium oxide samples from recycled magnet material, demonstrating its capability to contribute to a circular economy for rare earths. The company also finalized agreements to acquire an approximately 13.6% stake in France-based Carester SAS, a move that strengthens its collaboration with European partners. Additionally, the completion of the acquisition of Texas Mineral Resources Corp. gives USA Rare Earth 100% ownership and operating control of the Round Top project, a significant heavy rare earth deposit.
In a notable leadership transition, the company announced that CEO Barbara Humpton will retire on Oct. 1, 2026, with Serra Verde CEO Thras Moraitis named as her successor. This change comes as USA Rare Earth prepares to integrate Serra Verde's operations and expand its global footprint, including in Brazil and the UK. For 2026, the company expects to complete the Round Top Definitive Feasibility Study in the fourth quarter and reach a 600-metric-ton-per-year run-rate magnet manufacturing capacity at its Stillwater facility.
These developments are crucial for the U.S. and its allies to secure a reliable supply of rare earth elements, which are vital for a wide range of technologies, from smartphones to advanced military systems. By building a fully integrated supply chain, USA Rare Earth aims to mitigate supply chain vulnerabilities and ensure that critical materials are produced domestically and within friendly nations. The company's strategic investments and partnerships are expected to have long-term implications for the aerospace, defense, semiconductor, energy, and mobility sectors, which rely heavily on rare earth magnets.
For more information, visit USA Rare Earth's website.
