TLDR
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USA Rare Earth widens losses but boosts cash and project momentum.
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Strong cash reserves fuel rare earth project and plant progress.
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Round Top and magnet plant milestones mark major USAR advances.
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New deals strengthen USAR’s end-to-end rare earth integration.
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Losses rise, but USA Rare Earth’s growth roadmap stays on track.
USA Rare Earth, Inc. shares dropped over 6% to $15.82 during trading hours after the company reported steep third-quarter losses.Â
USA Rare Earth Inc, USAR
Despite solid operational progress, the financial report revealed increased net losses and rising operating costs. The company reaffirmed its growth plans with new projects and strategic agreements aimed at securing the U.S. rare earth supply chain.
Q3 Financial Results Show Deepening Losses Despite Capital Inflow
USA Rare Earth reported a net loss of $156.7 million for Q3 2025, compared to $1.87 million in the same quarter last year. The diluted loss per share increased to $1.64 from $0.03, reflecting wider year-to-date losses now at $247.4 million. Operating losses also rose to $15.86 million for the quarter, highlighting escalating development and scaling costs.
Cash usage from operations reached $2.85 million in Q3, up from $1.21 million last year, with year-to-date operating outflows at $21.09 million. The company ended the quarter with $258 million in cash and no significant debt, up from $16.76 million a year ago. Capital was bolstered by a $125 million equity raise and $163 million in warrant exercises post-quarter.
The company issued a redemption notice for remaining investor warrants, which may add another $123 million in cash. The adjusted net loss stood at $25.6 million for the quarter, reflecting ongoing expenses tied to infrastructure and acquisitions. Despite the negative earnings, the cash position positions the company to maintain forward momentum.
Strategic Projects Gain Ground as Round Top and Recycling Plans Advance
The Round Top rare earth project reached a major step as USA Rare Earth finalized a flow sheet validated through pilot-scale testing. A Pre-Feasibility Study is targeted for completion in the second half of 2026, indicating the project remains on schedule. This marks progress toward vertical integration from mining to finished magnets.
At the Wheat Ridge lab, the company progressed its swarf recycling plan through successful bench-scale tests, with pilot-scale trials slated for Q1 2026. This recycling initiative supports sustainability and adds value by reprocessing manufacturing waste. It also aligns with national goals to reduce reliance on foreign supply chains.
The Stillwater, Oklahoma magnet plant remains on track for commercial production in early 2026, supporting domestic magnet production. With equipment installation underway, the facility will form a core part of the company’s downstream capabilities. Combined, these efforts signal clear steps toward full-cycle U.S. rare earth independence.
Acquisitions and Partnerships Signal Supply Chain Integration Strategy
USA Rare Earth entered a definitive agreement to acquire Less Common Metals Ltd., expanding its capabilities in rare earth metal and alloy production. The acquisition brings critical know-how and enhances the company’s reach into both cast and strip-cast alloy manufacturing. It also complements the operations of the Stillwater magnet plant.
Further expanding its ecosystem, the company signed a memorandum with Enduro Pipeline Services for early 2026 neo magnet deliveries. This partnership supports demand from energy infrastructure and enhances USAR’s pipeline customer base. In parallel, a joint development agreement with ePropelled supports future magnet supply for electric propulsion systems.
These strategic actions form part of the company’s plan to secure end-to-end rare earth production and build a U.S.-centric supply chain. Despite short-term financial pressures, USAR is betting on long-term structural advantages. The execution of this integration roadmap may determine future performance as market demand intensifies.
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