USA Rare Earth has broken ground on a South Carolina plant for metal and magnet production, while its Round Top project in Texas remained in exploration as of June 30.
The company broke ground Sept. 9 at its Blacksburg facility. Texas Capital Securities analyst Matthew Key set a $28 target and assigned the stock a Buy rating in a coverage initiation.
As of June 30, the Round Top project was still in exploration, and mine construction had not begun. USA Rare Earth reported that metal-making was its only source of revenue in the six months through that date, with no revenue from mineral production or magnet manufacturing.
As much as $1.3 billion in Federal Financing Bank advances is guaranteed under agreements with the U.S. Department of Commerce, which cap direct awards at $277 million. The financing depends on project milestones and other conditions.
USA Rare Earth targets the start of commissioning at its South Carolina facility in 2028.
