Rare Earth Recycler Delivers Dy and NdPr Oxide at Oklahoma Plant

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Investors tracking the critical minerals sector are increasingly focused on companies building complete domestic supply chains outside Asia. USA Rare Earth Inc. (USAR:NASDAQ) has achieved a notable technical milestone by producing commercial-grade dysprosium and neodymium-praseodymium oxide from recycled magnet scrap.

Why Rare Earth Supply Chains Matter Now

Demand for magnet rare earth elements has doubled since 2015 and is projected to grow another third by 2030, driven by electric vehicles, wind turbines, robotics, and defense systems. 95% of rare earth consumption goes into permanent magnets, which are materials that create their own persistent magnetic field without external power. Okon Recycling's website explains that these magnets convert electrical energy into mechanical motion in everything from smartphone speakers to massive wind turbines. In 2024, China accounted for 60 percent of global mined magnetic rare earths and 91 percent of refined output, prompting governments and manufacturers to prioritize diversified sources.

Key Investor Takeaways

• USA Rare Earth produced commercial-grade dysprosium and NdPr oxide from recycled magnet scrap, a technically challenging step achieved outside Asia.
• Recycled swarf could eventually supply up to 30 percent of oxide feedstock, complementing output from Round Top and Serra Verde.
• The company is building a fully integrated chain from mining through magnet manufacturing across the U.S. and the U.K.
• Analyst price targets range from $30 to $45, reflecting confidence in its strategic positioning.
• Stillwater plant capacity is scaling from 600 tpa to a planned 10,000 tpa by 2029.

Integrated Value Chain Sets Company Apart

USA Rare Earth is constructing a complete rare earth and permanent magnet value chain that spans mining, processing, separation, metallization, alloy production, and magnet manufacturing. On July 14, 2026, the company announced that its hydrometallurgical facility in Wheat Ridge, Colorado, had successfully produced commercial-grade Dy and NdPr from recycled neodymium-iron-boron magnet scrap known as swarf. The oxides will next move to Less Common Metals in the U.K. for qualification and conversion into metals and strip cast, supporting U.S. magnet production. Additional processing using material from Round Top and Serra Verde's Pela Ema mine is underway, with further results expected soon.

Strategic Importance of Heavy Rare Earth Separation

Commercial-scale separation of heavy rare earth elements such as dysprosium is among the most demanding stages in the production chain. Very few producers outside Asia can deliver commercial-grade Dy oxide. Dysprosium allows magnets to retain performance at high temperatures, a requirement for aerospace, defense, electric vehicle, and industrial motor applications, while NdPr supplies the core magnetic strength. By completing this separation from recycled feedstock, USA Rare Earth joins a small group of Western producers capable of supplying this constrained material.

Views and Market Position

Third-party commentary has highlighted the company's broad capabilities. On July 20, 2026, Shad Marquitz of Excelsior Prosperity described USA Rare Earth as having best-in-class capabilities across the full chain with U.S. government support and noted it as one of the industry's most strategic operations because it is the only scaled producer of all four magnetic rare earth elements outside Asia. The company also holds a 15-year 100 percent offtake agreement with price floors from a special purpose vehicle backed by government and private capital.

Recent analyst price targets include Needham at $33, Roth Capital at $30, Wedbush at $35, Northland Securities at $45, and Canaccord Genuity at $32.

Stillwater Plant Expansion and Recycling Potential

By recovering rare earth elements from manufacturing scrap, USA Rare Earth expects recycled swarf to provide up to 30 percent of future magnetic rare earth oxide feedstock. The company's investor presentation outlines Stillwater, Oklahoma, plant catalysts, including capabilities across macro and micro magnets, 600 tpa Line 1a commissioned, Line 1b targeting Q1 2027, and planned capacity reaching 10,000 tpa by 2029.

Ownership Structure and Share Details

USA Rare Earth Inc. has a market cap of US$3.73 billion, with 244.66 million shares outstanding. The 52-week range is US$10.91-US$43.98.

¹Institutions own 50.88 percent of shares, Strategic Investors own 15.36 percent, Management and Insiders own 0.77 percent, and Retail investors hold the remaining 32.99 percent.

Common Questions from Investors

Q: What are rare earth elements?

A: Rare earth elements are a group of 17 metals used in high-performance technologies, including electric vehicles, wind turbines, smartphones, robotics, defense systems, and advanced electronics. Although relatively abundant, they are difficult and costly to separate and refine on a commercial scale.

Q: Why is dysprosium separation significant?

A: Dysprosium is one of the most technically challenging rare earth elements to separate at commercial purity, and virtually all current supply originates in China. Successful separation outside Asia helps address a primary constraint on the Western permanent magnet industry.

Q: How does recycling fit into the supply strategy?

A: Recycling manufacturing scrap known as swarf recovers valuable rare earth elements that can supplement mined material. The company expects this source could eventually meet up to 30 percent of its oxide feedstock needs.

Q: What are permanent magnets used for?

A: Permanent magnets maintain their magnetic field without electricity and are essential components in electric motors, generators, wind turbines, consumer electronics, industrial machinery, and defense applications.

The achievement at Wheat Ridge underscores USA Rare Earth's progress toward a secure, integrated rare earth supply chain for Western manufacturers.