Once completed, LCM will supply Neodymium Iron Boron (NdFeB) metal and strip casting alloys to USAR’s magnet plant in Stillwater, Oklahoma, supporting both domestic production and global distribution.
LCM’s metals and alloys are essential for advanced magnets, semiconductors and aerospace components, serving customers in the defense, automotive, electric vehicle, industrial and technology sectors in multiple countries.
Headquartered in Cheshire, United Kingdom, and founded in 1992, the company processes metals from both mined and recycled sources. It also holds a unique position as the only former Chinese producer of both light and heavy permanent magnet metals and rare earth alloys on a large scale.
The takeover was initially announced in September in addition to a $125 million equity investment from an existing shareholder to support USAR’s growth plans. Under the agreement, USAR will acquire LCM for $100 million in cash plus 6.74 million shares of USAR common stock.
The company is developing its rare earth sintered neo magnet manufacturing facility in Stillwater, aiming to meet the growing demand for NdFeB magnets in electric vehicles, renewable energy and defense applications.
LCM’s metals and alloys will be imported directly into this facility in an effort to reduce dependence on foreign sources and increase U.S. domestic supply capabilities.
The deal positions USA Rare Earth to play a strategic role in reshaping the global rare earth market as countries – especially the US – seek to reduce dependence on China’s tight grip on critical materials.
One of the most recent steps taken by the U.S. government to achieve this goal was a $1.4 billion public-private partnership with Vulcan Elements and ReElement Technologies, a subsidiary of American Resources Corporation (NASDAQ:AREC).
ReElement will focus on processing recycled magnets, electronic waste and mined concentrates into high-purity rare earth metals, and Vulcan will convert those oxides into metals and finished magnets.
By combining LCM’s established manufacturing capabilities with USAR’s US-based processing and magnet manufacturing, USAR aims to similarly contribute to rebuilding a stable and independent domestic supply chain.
“The combination of USAR-LCM will establish rare earth production in the United States for the first time in decades as we move quickly to integrate these capabilities in Stillwater to supply all raw materials for the construction of our 5,000-ton magnet manufacturing facility,” said Michael Blitzer, president of USAR.
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Securities Disclosure: I, Giann Liguid, have no direct investment interest in any company mentioned in this article.
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