USA Rare Earth Inc.'s (NASDAQ:USAR) CFO just dropped a reality check that sent ripples through the critical minerals space. "We don't have enough capacity to supply demand for 2026… our demand curve goes out to 2033," Rob Steele said on the company's third-quarter earnings call. His words said more about market tightness than any slide deck could.
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Magnet Line One Nears Launch — Line Two Already Loading
The company is on track to begin commercial-scale magnet production in the first quarter of 2026. This milestone could make it one of the only Western producers outside China with serious rare-earth capacity. Steele said the final steps come down to execution — "getting the equipment installed and the people trained."
But USA Rare Earth is already planning "line two," which would double output from 1,200 to 2,400 metric tons by 2027. Demand, in other words, isn't the problem — supply is.
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Building A China-Free Chain
CEO Barbara Humpton called the pending UK-based LCM acquisition a "first step to really scale this capability outside of China," describing close U.S.–U.K. coordination on national-security reviews.
The company is focusing on high-stakes end markets. Defense, aerospace, EVs, and data centers, where reliable magnet supply is becoming strategic, not optional.
Why It Matters
With $400 million in cash and orders stretching nearly a decade out, USA Rare Earth is emerging as a linchpin in the West's race to de-risk from China.
The problem now isn't who wants their magnets — it's whether they can build fast enough to meet them.
Read Next:
- Jim Cramer: Rare Earth Stocks Are On Fire — And That’s The Problem
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