Following promising results from an early-stage pilot program, the company now plans to begin commercial production in late 2028.
USA Rare Earth (USAR) said on Dec. 10 that promising results from an early-stage pilot program have led to accelerated plans to enter commercial production of rare earth minerals at its Round Top mine in West Texas.
The Stillwater, Oklahoma-based miner said successful ongoing testing for heavy rare-earth elements dysprosium and terbium—essential elements used to make high-performance permanent magnets used in smartphones, electric vehicle motors, and wind turbines—advanced operations at the company’s Hydromet demonstration plant in Wheat Ridge, Colorado. The pilot facility is expected to begin running in 2026 and will operate five solvent-extraction circuits targeting dysprosium, terbium, hafnium, and zirconium.
Data collected from the pilot plant is crucial for designing a commercial-scale plant that could be in operation by 2028—two years earlier than the company previously expected.
“We’re challenging ourselves to innovate and pursue creative solutions that accelerate our timeline for securing, reshoring, and growing the U.S. rare earth value chain,” USAR CEO Barbara Humpton said. “As global demand for rare earth magnets continues to rise and geopolitical risks escalate, accelerating domestic production is essential for securing the long-term competitiveness of U.S. manufacturing.”
Advancing its plans will save millions and also allow it to complete a definitive feasibility study by 2027, the company said. Definitive feasibility studies are important benchmarks for early-stage mining projects because they provide detailed insight into a project’s capital requirements, risk factors, and economic viability—crucial information for attracting institutional investment.
USAR said in its third-quarter earnings report on Nov. 6 that it’s targeting completion of a pre-feasibility study for the Round Top project in the second half of 2026.
The company is also developing a 310,000-square-foot neo magnet manufacturing facility in Stillwater that’s expected to be commissioned for commercial production in the first quarter of 2026.
The Round Top deposit in Hudspeth County in the arid Chihuahuan Desert in West Texas contains 15 of 17 total rare earth minerals and will supply minerals such as gallium, beryllium, and lithium for USAR’s magnet production facility in Oklahoma. At full production of 5,000 metric tons annually, the facility will produce hundreds of millions of magnets each year, the company said. However, initial production is planned for approximately 1,200 metric tons.
By Rob Sabo
