USA Rare Earth Goes Public: A Milestone and Now the Work Starts

Highlights

• USA Rare Earth completes SPAC merger and lists on Nasdaq under ticker USAR
• Targets domestic rare earth and magnet production
• Plans to develop a 5,000 metric ton magnet facility in Oklahoma
• Plans a strategic Round Top deposit mining project in Texas
• CEO Joshua Ballard positions the company as a national security solution
• Aims to reduce dependence on foreign rare earth mineral suppliers, particularly China

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USA Rare Earth (USARE) has officially entered the Nasdaq arena under the ticker USAR, following its $50 million SPAC merger with Inflection Point Acquisition Corp. II (opens in a new tab) (IPXX). Touted as a critical step toward securing an independent U.S. rare earth supply chain, this public listing comes amid heightened geopolitical tensions, rising tariffs, and growing concerns over China’s dominance in rare earth mining and magnet production.

The Business Combination was approved by IPXX stockholders in a special meeting held on March 10, 2025, and formally closed on March 13, 2025. USARE and IPXX also announced an additional $8 million upsize to the PIPE contributed by IPXX affiliates and other investors in connection with the business combination.

On March 14, 2025, USARE’s common stock and public warrants will begin trading on the Nasdaq under the ticker symbol “USAR” and “USARW” respectively.

USA Rare Earth has a unique opportunity to become the leading domestic supplier of rare earth neo magnets and heavy rare earths required for technologies across a wide range of industries, including semiconductors, defense, robotics, electric vehicles, and energy transition.

Rare Earth Exchanges was in touch with CEO Joshua Ballard, who frames this move as a national security imperative, stressing that domestic production of rare earth magnets is crucial for defense, electric vehicles, semiconductors, and the broader energy transition.

Yet, as the company lays out ambitious plans—including a Stillwater, Oklahoma magnet facility targeting 5,000 metric tons per annum and its controversial Round Top deposit mining project in Texas—several tough questions loom.

It’s All About Delivery

While the SPAC deal injects fresh capital into USA Rare Earth’s operations, SPAC-funded ventures have a history of underperformance and volatile stock movements post-merger. The company is betting big on its proprietary rare earth separation technology and its ability to transform Round Top into a strategic asset. But does USARE have the operational expertise, financial runway, and regulatory approvals to execute at scale? The industry is littered with failed promises, and Round Top’s actual mineral yields and feasibility remain unproven at full commercial scale.

How scalable is the company’s underlying magnet technology? What’s the adoption curve for U.S.-based magnets compared to those of their Asian counterparts?  USA Rare Earth CEO Joshua Ballard certainly is upbeat. “The recent news on tariffs and rising global geopolitical tensions are a wake-up call for America – we must build a domestic rare earth mineral and magnet supply chain here at home to support a wide range of critical technologies, including our national defense.”  The CEO continued, “I’m incredibly proud of this team as the closing of this transaction and our listing on Nasdaq is another key milestone in our evolution in building this supply chain. The additional capital raised will help propel us forward as we build one of the largest magnet facilities in North America to serve the wider neo-magnet market, as well as develop our incredibly unique deposit at Round Top that, in my opinion, is a strategic national asset.”

Wall Street Meets National Security

USARE positions itself as a patriotic solution to a critical supply chain vulnerability, yet its public debut also means private investors and institutions stand to profit. With SPAC sponsors and PIPE investors securing significant equity stakes, will the company prioritize shareholder value over long-term national interests? Or will it follow the familiar cycle of over-promising, struggling to meet production timelines, and ultimately falling short of its lofty projections?  This is a critical view, but real based on historical examples.

Is this A Game-Changer?

The U.S. desperately needs a domestic rare earth supply chain, and USA Rare Earth, along with MP Materials (opens in a new tab) in California and Texas, are now at the center of that high-stakes effort. Being listed on Nasdaq does not guarantee success. It merely puts the company under the relentless scrutiny of investors, regulators, and industry stakeholders.

Will USARE become the rare earth champion America needs alongside an ascending MP Materials, or will it struggle under the weight of execution risks and capital market pressures? Investors, policymakers, and the public must watch closely—because, in the battle for critical minerals, too much is now on the line.