USA Rare Earth Snaps Up UK Metals Maker

Core Viewpoint - USA Rare Earth Inc. has agreed to acquire Less Common Metals to enhance its rare earth supply chain and support its magnet manufacturing strategy [1][2][3] Group 1: Acquisition Details - The acquisition involves a payment of $100 million in cash and the issuance of 6.74 million shares of common stock [3] - LCM is recognized as the only proven ex-China producer of both light and heavy rare earth permanent magnet metals and alloys at scale [3][4] - The deal is expected to close in the fourth quarter of 2025, subject to customary closing conditions and regulatory clearance in the UK [5] Group 2: Strategic Implications - The acquisition will enable USA Rare Earth to establish an end-to-end rare earth supply chain and secure access to high-quality metals for global customers [1][4] - LCM will supply neodymium iron boron (NdFeB) metal and strip cast alloy to USA Rare Earth's magnet facility in Stillwater, Oklahoma, once production begins [4] - The deal supports the development of USA Rare Earth's planned magnet manufacturing facility in Oklahoma [2] Group 3: Financial Position - USA Rare Earth reported cash and cash equivalents of $121.8 million as of June 30, 2025 [5] - The company secured a $125 million equity investment from an existing shareholder at $15 per share to fund its growth strategy [6] - Following the announcement, USA Rare Earth shares increased by 6.78% to $18.5 in premarket trading [6]