USA Rare Earth CEO: Now is the time for private sector to strengthen supply chain outside of China

Industry Dynamics - The world is waking up to the fragility of the rare earth supply chain, which has developed over the last 30 years and become geopolitical leverage [2] - China's non-market driven behavior necessitates market incentives for the private sector to strengthen the supply chain outside of China [8] - The future demand for permanent magnets is expected to grow significantly with the advent of physical AI and robotics [14] USA Rare Earth Strategy - USA Rare Earth aims to strengthen the supply chain outside of China by integrating mining, processing, and magnet manufacturing [2][4][5] - The company is acquiring Less Common Metals, a UK-based maker of samarium cobalt magnets, to gain expertise and scale production [6][7] - USA Rare Earth is prioritizing support to the US defense sector with the assets it controls [16] - The company is well-capitalized and debt-free, focusing on bringing the whole sector forward [9] Production and Expansion - Magnet making will begin soon, following a "magnet to mine" strategy [11] - The company is developing short-term, medium-term, and long-term strategies to bring all assets to scale [10] - Auto manufacturers and others are expected to agree on building demand signals for rare earth elements outside of China through offtake commitments [13][14] Government Support - The private sector is seeking government support in the form of offtake agreements and permitting to accelerate development [9]