USA Rare Earth’s $2.8 Billion Brazil Deal vs. Its $1.2 Billion South Carolina Bet: Which One Actually Matters More?
Rare-earth elements are crucial components for modern technologies, including defense systems. After decades of aggressive state subsidies and price undercutting, China controls 70% of rare-earth element extraction and 90% of processing, according to research from The Motley Fool.
USA Rare Earth (NASDAQ: USAR) is one of the companies looking to break China’s dominance by establishing a fully integrated, Western-based “mine-to-magnet” supply chain independent of China.
Building an end-to-end industrial network from scratch is a big undertaking, and USA Rare Earth has made some massive investments in the last year, including a $2.8 billion acquisition of Brazilian miner Serra Verde and another $1.2 billion investment in its South Carolina facility to process rare earths. Here’s which investment matters more, and the role each plays in USA Rare Earth’s mine-to-magnet strategy.
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