USA Rare Earth Announces Start of Commercial-Scale Shipments and Sale of Heavy Rare Earth MREC from Serra Verde to US SIIE, LLC
Payments began in November under a 15-year take-or-pay agreement with non-China reference pricing and guaranteed price floors.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
USA Rare Earth (USAR) has begun commercial-scale shipments and sales of mixed rare earth carbonate from Serra Verde to US SIIE. Shipments started in October and sales and payments in November under a 15-year, 100% take-or-pay agreement for Phase I production. The buyer is a U.S. Government-funded special purpose vehicle. Pricing uses non-China references, with guaranteed floors for neodymium, praseodymium, dysprosium and terbium.
Stage 1 optimization was completed and commissioned on time and within budget, restarting commercial-scale production. Product meets contractual quality requirements. The company targets an initial run rate of ~4,000 tonnes per year of total rare earth oxide in Q2 2027. Stage 2 commissioning is planned for Q3 2027, targeting ~6,400 tonnes per year by year-end 2027. A technical and economic evaluation is underway for a potential Phase II expansion that could double run-of-mine production.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major pointCommercial-scale MREC shipments began in October, with first sales and payments in November.
- Moderate point15-year, 100% take-or-pay agreement covers Phase I production with U.S. Government-funded US SIIE.
- Moderate point. Forward-looking: it has not happened yet and may not happen.~4,000 tonnes per year of total rare earth oxide is the targeted initial run rate for Q2 2027.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Stage 2 commissioning is planned for Q3 2027, targeting ~6,400 tonnes annually by year-end 2027.
- Minor pointNon-China reference pricing includes guaranteed price floors for neodymium, praseodymium, dysprosium and terbium.
3 minor points
- Minor pointStage 1 optimization completed and commissioned on time and within budget, restarting commercial-scale production.
- Minor pointProduct quality meets all acceptance specifications required under the offtake agreement.
- Minor point. Forward-looking: it has not happened yet and may not happen.Potential Phase II expansion is under technical and economic evaluation and could double run-of-mine production.
Negative
- None.
Key Figures
- Offtake agreement term
- 15 years
- MREC shipments to US SIIE
- Offtake coverage
- 100% of Phase I production
- Take-or-pay agreement
- Stage 1 production run rate
- ~4,000 tpa TREO
- Targeted for Q2 2027
- Stage 2 production run rate
- ~6,400 tpa TREO
- Targeted by year-end 2027
- Dysprosium oxide price differential
- 14–16x higher than China prices
- Recent non-China prices
- Terbium oxide price differential
- 6–9x higher than China prices
- Recent non-China prices
Key Terms
mixed rare earth carbonate technical
take-or-pay financial
ndfeb technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Commenced commercial-scale shipments of mixed rare earth carbonate (MREC) in October and first sales in November, following successful completion of Stage 1 of its optimization and expansion program; production is ramping toward an initial run rate of ~4,000 tpa TREO, targeted for Q2 2027
Shipments are under 15-year,
Marks USAR as the only scaled producer outside Asia of scarce heavy rare earths and all four key rare earths used in NdFeB magnets
Product meets customer’s quality acceptance specifications as per the Offtake Agreement, demonstrating active production and validating Serra Verde's optimization program
Completion of Stage 2 of the optimization and expansion program is well underway and planned to be commissioned in Q3 2027, targeting an increased run-rate in production to ~6,400 tpa TREO by year-end 2027
STILLWATER, Okla., Nov. 09, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) ("USAR" or the "Company"), an integrated rare earth, critical minerals and advanced materials company and the only scaled producer outside Asia of scarce heavy rare earths, and all four rare earth elements used in NdFeB magnets, today announced it has begun shipping Mixed Rare Earth Carbonate ("MREC") to US SIIE, LLC, a special purpose vehicle funded by the U.S. Government (the “offtake partner”), under a 15-year,
Highlights
- Successful completion of flowsheet optimization: Stage 1 of the optimization and expansion program successfully completed and commissioned within budget and on time, and commercial-scale production restarted. Ramp-up volumes and product quality being delivered as planned.
- Shipments underway: USAR has begun shipping MREC under its Offtake Agreement and began receiving payments.
- Quality: The product meets all quality acceptance specifications required by the offtake partner under the Offtake Agreement.
- Pricing: Priced in accordance with the Offtake Agreement, which is based on non-China prices. Recent non-China prices for dysprosium oxide are 14-16x higher than China prices1; recent prices for terbium oxide are 6-9x higher than China prices.2
“The start of commercial-scale shipments of MREC containing all four magnetic rare earths, yttrium and other valuable heavy rare earths to our offtake partner is a defining milestone for USA Rare Earth and for the broader effort to build a secure, reliable and responsible non-China supply chain for the heavy rare earths that power tomorrow’s modern economy,” said Thras Moraitis, Chief Executive Officer of USA Rare Earth. “USA Rare Earth is the only scaled producer outside Asia of the vital heavy rare earths used in advanced permanent NdFeB magnets, as well as other elements embedded in technologies such as renewable energy, mobility, robotics, drones, semiconductors, medical applications and defense. With Stage 1 of the optimization and expansion program successfully completed and commissioned, and shipments already underway, we continue to demonstrate our relentless focus on execution. We look forward to expanding Serra Verde’s contribution of these scarce elements with the completion of our second stage of optimization and expansion in 2027.”
“Executing on our first commercial product shipment under the Offtake Agreement is a proud moment for everyone at Serra Verde and, indeed, for Brazil,” said Ricardo Grossi, Head of Upstream in Brazil. “It reflects the work of our dedicated and expert team in Brazil and the optimization program we have been executing to scale production and refine our process. We are ramping up and the optimized process is performing as we anticipated, with product quality ahead of planned specification, meeting our contractual obligations. We aim to continuously improve our execution and remain focused on ramping up production and shipments in a sustainable and responsible manner. This is an important moment for Brazil, a country which has the potential to play a pivotal role in the global supply of critical minerals, especially rare earths. As the first scaled processor of heavy rare earth-rich ionic clays outside Asia, Serra Verde’s processing technology is exclusively home grown – underlining the deep innovation and operational capabilities in Brazil. As always, we are grateful for the patience and support of our customers, our partners, the Federal and State governments and the Minaçu community, from which some
Serra Verde Optimization Program
Serra Verde is executing a two-stage optimization program, comprising its Phase I operations, including processing and throughput upgrades, designed to scale production toward its targets of ~4,000 tpa TREO (“total rare earth oxide”) in Stage 1, and up to ~6,400 tpa TREO in Stage 2. In parallel, technoeconomic evaluation is underway for a potential Phase II expansion, which could double run-of-mine production from the same mineral deposit.
About the Offtake Agreement
Serra Verde's Offtake Agreement is a 15-year,
Investor Contact
J.B. Lowe, CFA
Vice President, Investor Relations
USA Rare Earth, Inc.
ir@usare.com
Media Contact
Collected Strategies
USAR-CS@collectedstrategies.com
About USA Rare Earth
USA Rare Earth, Inc. (Nasdaq: USAR) is building a fully integrated rare-earth and permanent-magnet value chain across the United States, Brazil and the United Kingdom. Through its ownership of Less Common Metals (LCM), one of the world’s leading producers of rare-earth metals and alloys, its development of magnet manufacturing capacity in Stillwater, Oklahoma, its Pela Ema mine in Brazil and the Round Top deposit in Texas, USA Rare Earth is pursuing capabilities across the value chain from mining to metal-making, alloy production and neodymium magnet manufacturing. USA Rare Earth is establishing a secure, Western-aligned supply of materials essential to the aerospace and defense, semiconductor, energy, data center, physical AI, mobility, healthcare and industrial sectors.
For more information, visit www.usare.com
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements include those relating to the targeted production capacity as well as the debottlenecking and optimization program and Phase II expansion of the Pela Ema mine and processing facility, the ramp up of our production and shipments in a sustainable and responsible manner, the expected benefits of the Offtake Agreement and other statements regarding the Company’s expectations for future development, operations, strategies, transactions and financial performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as “accelerate,” “advance,” “aim,” “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “growth,” “intend,” “may,” “might,” “plan,” “potential,” “project,” “propose,” “should,” “target,” “vision,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
Forward-looking statements are subject to risks and uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from USA Rare Earth’s expectations, including without limitation: potential delays in the optimization and commissioning program and the Phase II expansion at the Pela Ema facility; risks that the Offtake Agreement is terminated or ceases to be in full force and effect or that the counterparty to the Offtake Agreement is insufficiently capitalized, including as a result of a failure to finalize definitive debt financing arrangements within the timeframes contemplated by the Offtake Agreement; our ability to meet individual customer specifications and produce a consistently high quality product; physical climate risks related to our mineral projects and operations; risks that we may not realize the anticipated benefits of our combination with Serra Verde or our proposed and prior acquisitions, including expected synergies, financial performance, estimated EBITDA and, in the case of Serra Verde, integration of operations, on the anticipated timeline or at all; differences between planned and actual recovery and yield rates; risks that we may experience delays, unforeseen expenses, increased capital costs, and other complications while developing our projects; risks and hazards associated with our production and manufacturing activities; risks that the proposed transaction with Carester may not be consummated on its anticipated timeline or at all; political, economic, regulatory, tax, currency and other risks associated with our foreign operations, including in Brazil and Switzerland; the assumption of the Offtake Agreement and substantial indebtedness under Serra Verde’s Retained Finance Agreement, in each case which contains restrictive covenants and other requirements that could adversely affect our financial flexibility and operations; the ability of our planned Blacksburg facility to commence commercial operations on the timing and with the production capacity anticipated or at all; our limited operating history; our ability to commercially extract minerals from the Round Top deposit on its anticipated timeline or at all and other risks related to developing and operating rare earth mines; our ability to raise necessary capital on acceptable terms or at all; potential dilution to existing stockholders and adverse effect on our stock price if we issues additional common stock or equity-linked securities; the volatility of our stock price; the availability of rare earth oxide, metal feedstock and other materials, utilities (including power and water), equipment and separation capacity in quantities and prices that allow us to develop and commercially operate our Stillwater facility, our Less Common Metals facility in the United Kingdom and other facilities; our relationship with Less Common Metals' suppliers and customers; potential supply chain, logistics or product delivery disruptions; any delays in obtaining or renewing permits and licenses; any changes in royalty rates or the imposition of new royalties; increased utility or transport costs; risks associated with community relations; fluctuations in demand for and prices of neo magnets, rare earth elements and our other products, including without limitation as a result of dumping, predatory pricing and other tactics by our competitors or state actors or the overall competitive environment; our ability to achieve positive cash flow or profitability or the ability to access cash flow within our corporate structure due to restrictions contained in our financing agreements; our ability to convert current commercial discussions and/or memorandums of understanding with customers for the sale of our neo magnets and other products into definitive orders; our dependence, in part, on the growth of existing and emerging uses for neo magnets; the risk that additional manufacturing, refining and mining competitors could result in a reduction in revenue; geopolitical developments or disruptions, such as changes in the political environment, export/import or environmental policy of the People’s Republic of China, the United States or other countries in which we operate or sell products or otherwise; our designation on an export control list by China which has had and is expected to continue to have an adverse impact on our ability to source key raw materials, equipment, supplies and technical services from China; war, terrorism, natural disasters or public health emergencies; our ability to retain or recruit key personnel; potential work stoppages or labor issues; environmental, health and safety regulations; the receipt of funding from the U.S. Department of Commerce is subject to the achievement of milestones which may not be achieved on the expected timeline or at all as well as other risks and uncertainties; the risk that any harm to our reputation and brand could adversely affect our business and our ability to comply with requirements for federal, state and local government incentives and financing.
Additional risks and detailed information regarding factors that may cause actual results to differ materially have been and will be included in the Company’s filings with the SEC, including under the heading “Risk Factors” in the Company’s most recently filed Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available on the SEC’s website at www.sec.gov. Any forward-looking statements speak only as of the date of this press release (or such other date as is specified in such statements), and the Company undertakes no obligation to update any forward-looking statements as a result of new information or future events or developments, except to the extent required by law.
___________
1 Based on Argus and Benchmark Minerals Intelligence indices from late October
2 Based on Argus and Benchmark Minerals Intelligence indices from late October
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
When did USA Rare Earth start commercial shipments and sales from Serra Verde?
Commercial-scale shipments of mixed rare earth carbonate began in October, followed by first sales and payments in November. Deliveries go to US SIIE, a U.S. Government-funded special purpose vehicle, under a 15-year, 100% take-or-pay agreement for Phase I production.
What production targets has USA Rare Earth set for Serra Verde in 2027?
USA Rare Earth targets an initial run rate of ~4,000 tonnes per year of total rare earth oxide in Q2 2027. Stage 2 commissioning is planned for Q3 2027, targeting an increased production run rate of ~6,400 tonnes per year by year-end 2027.