Mentioned:
The race to build rare earth magnets is ramping up in America. Which is exactly why USA Rare Earth is raising a new round of funding.
What’s happening:
- USA Rare Earth (NASDAQ: USAR) has entered into an agreement to raise $75M USD through a new equity financing round
Why it matters:
- Rare earth elements have continued to come under immense political scrunity, which has been largely fuelled by China’s recent restrictions around rare earth element exports and new legislation coming out of the White House aimed at building out domestic sources of rare earth elements and magnet production
Going deeper:
- USA Rare Earth has publicly stated they plan to use the new infusion of cash to further advance the construction of their rare earth sintered neo magnet production facility located in Stillwater, Oklahoma
- USA Rare Earth also just recently commissioned their advanced Innovation Lab which is focused on replicating the entire production process for magnets as well as enabling rapid prototyping
The intrigue:
- Domestic rare earth processing facilities have been a major theme in both Silicon Valley and Wall Street lately, which has led to both startups pouring capital into building out new facilities and publicly traded companies completing major build outs of existing processing facilities
