USA Rare Earth (Nasdaq: USAR) has achieved a production milestone with its first output of yttrium, further progressing its plans to operate a full rare earth value chain to serve Western markets.
This week, the Oklahoma-based company announced its first commercial pour of 2N–2N5 (99%–99.5% purity) yttrium metal through its wholly-owned subsidiary, Less Common Metals, at its facility in Cheshire, United Kingdom.
This milestone, says USAR, places the company among a limited number of producers of commercial-grade yttrium metal operating outside of China.
Yttrium, one of the so-called “heavy” rare earths, plays a vital role in a range of high-performance applications. It is a key material in thermal barrier coatings used on turbine blades and other high-temperature aerospace components. The metal is also used in electronics, energy systems, lasers, superconductors and advanced ceramics.
Prices of yttrium surged during 2025 after China, the world’s top rare earth producer, placed export restrictions on seven minerals including yttrium.
Mine-to-magnet strategy
“Producing commercial-grade yttrium metal at LCM marks a significant step in strengthening our position as a global leader in rare earth materials and technology,” said Barbara Humpton, CEO of USA Rare Earth, in a press release on Wednesday.
The company is currently looking to build a fully integrated rare earth and permanent magnet supply chain across the US, UK and European markets. The strategy is backstopped by the massive Round Top deposit in Texas, which it plans to bring into production in 2028, and a magnet manufacturing plant in Stillwater, Oklahoma, where it recently commissioned the first production line. In Europe, the company is considering building another magnet plant in France.
The US projects have already received the backing of the Trump administration, which earlier this year provided $1.58 billion to USAR in exchange for an equity stake of between 8% and 16%.
“Combined with our planned yttrium extraction at Round Top and our oxide processing capabilities, this positions USA Rare Earth to serve the aerospace, defense and advanced manufacturing customers who can no longer rely solely on Chinese supply,” Humpton said.
According to USAR, its yttrium production capability is built around controlled refining and purification processes designed to deliver consistent, high-purity material suitable for integration into industrial applications.
Shares of USA Rare Earth rose nearly 12% on Friday, in line with a broader market surge after Iran announced the reopening of the Strait of Hormuz. The company’s market capitalization is estimated at $4.44 billion.
