OKLAHOMA CITY – USA Rare Earth LLC recently revealed its procurement and development of the first fully integrated U.S.-based rare earth metal and sintered neo-magnet manufacturing facility in Stillwater.
USA Rare Earth LLC controls and operates the Round Top Heavy Rare Earth, Lithium and Critical Minerals Project in Hudspeth County, Texas.
USA Rare Earth plans to invest more than $100 million in developing the Payne County manufacturing facility, including buying, renovating and equipping a building. Stillwater Deputy City Manager Melissa Reames said the company will pay $9.9 million in cash for the vacant commercial building that formerly housed Total Energy, and Mayor William Joyce said the city will provide the company with a $7 million incentive.
USARE will utilize its facilities and technology to convert rare earth oxides that are mined in Texas into metals, magnets and other specialty materials, the Commerce Department reported.
Rare earth elements are 17 raw elements used in electric vehicles, wind turbines, mobile electronic devices and military hardware, and are considered difficult to mine, said Thayer Smith, president of USA Rare Earth.
During a news conference in Stillwater attended by Gov. Kevin Stitt, Smith said an F-35 fighter aircraft contains 900 pounds of rare earth magnets and a Virginia-class submarine has 9,000 pounds of the magnets.
Initial production at the Stillwater facility is expected to start next year, with the goal of creating more than 100 new jobs and generating more than $6.6 million in wages when fully operational.
“Oklahoma has long been on the cutting edge of energy innovation, and this project embodies the energetic, forward-thinking mentality of our state,” Stitt said. “The USA Rare Earth project will help our state remain a leader in domestic energy production, further diversifying our economy while reducing U.S. dependence on foreign imports.”
“Currently the United States, European Union, Japan, and much of the developed world is largely reliant on China for critical rare earth element production,” Smith said. “Our goal with this project is to advance U.S. manufacturing capacity by establishing the first vertically integrated domestic supply chain for rare earth elements.”
The industry, both mining of raw materials and manufacturing, is controlled primarily by China, said Ken Wagner, Oklahoma’s Secretary of Energy and Environment.
“To increase national security, the U.S. must secure a domestic, reliable and sustainable supply of critical rare earth elements,” Wagner said. “Oklahoma is perfectly positioned to help lead the way as the U.S. seeks energy independence and less reliance on foreign materials from countries who do not share our values.”
In addition to national defense, rare earth elements are behind many of Oklahoma’s core economic drivers, including the aerospace, technology, automotive and advanced manufacturing industries.
USA Rare Earth is poised to become the leading domestic supplier of critical raw materials required for the electric vehicle, green energy, consumer electronics, and defense industries, as well as battery-grade lithium and tech metals needed for chipsets, semiconductors, and 5G, company and state officials said.
State leaders also noted having access to the state’s research institutions, including close proximity to Oklahoma State University in Stillwater, will also be vital for this project, providing proximity for ongoing research, development and innovation of critical rare earth elements and a strong workforce.
“The State of Oklahoma and the City of Stillwater offer a unique business, labor and operating environment for USA Rare Earth and will be a catalyst for economic development,” Mayor Joyce said.
“Our mission is to bring jobs, investment, and economic prosperity to the state of Oklahoma,” said Jennifer Springer, director of business development at the Commerce Department. “By establishing more high-wage job opportunities, this project will enable Oklahoma to become a nationwide industry leader across its core economic competencies.”
In 2020, USA Rare Earth acquired the only sintered neo-magnet manufacturing equipment in the western hemisphere. The company plans to have the necessary operating permits for all metal, flake, and magnet operations in 2022 with initial production to start in 2023. For more information, visit https://www.usare.com/.
USA Rare Earth LLC’s mission is to create a fully integrated, U.S.-based “mine-to-magnet” critical mineral supply chain supporting the ongoing green revolution with no dependence on China, Smith said. USA Rare Earth, based in Florida, has developed the first rare earth and critical minerals processing facility in the United States (Colorado) and owns the only neodymium iron boron permanent magnet manufacturing equipment in the Western Hemisphere.