U.S. Rare Earth Magnet Supply Chain: September 2026 in Review
September turned two long-pending acquisitions into completed deals, brought the first publicly announced Army magnet award for a domestic startup, and moved two magnet plants into construction.
Deals Close
Energy Fuels completed its acquisition of Australian Strategic Materials on August 28, adding a South Korean metals and alloy plant with 1,300 metric tons per year of NdFeB alloy capacity, now being expanded to 3,600 tons by the end of 2026. Its separate agreement to acquire Vacuumschmelze, parent of eVAC Magnetics, remains subject to antitrust and regulatory approvals.
USA Rare Earth closed its roughly $2.8 billion combination with Serra Verde Group in early September, paying $300 million in cash plus about 126.8 million shares. Serra Verde's Pela Ema mine in Brazil targets about 4,000 metric tons per year of total rare earth oxide by the end of 2026. A second stage averaging 6,400 tons is to begin commissioning within 12 months. Former Serra Verde CEO Thras Moraitis becomes USA Rare Earth's CEO on October 1.
Defense Demand
On September 23 the U.S. Army selected Vulcan Elements to supply NdFeB magnets for brushless motors in small drones under its SkyFoundry initiative. Contract value and volumes were not disclosed. Vulcan says its Benson, North Carolina plant, now under construction, is designed for 10,000 metric tons per year.
Construction Milestones
USA Rare Earth broke ground on September 9 on its roughly $1.2 billion Blacksburg, South Carolina plant, planned for 6,400 metric tons per year of magnets and 5,000 tons of strip-cast metal and alloy. Commissioning is targeted to begin in 2028. With a planned Stillwater, Oklahoma expansion, the company expects 10,000 tons per year of magnet capacity.
Niron Magnetics, whose iron nitride magnets use no rare earths, raised steel at its Sartell, Minnesota plant. The company cites 287,000 square feet, capacity of up to 1,500 tons per year, 175 jobs, and operations in 2027.
Recycling
Cyclic Materials opened its Mesa, Arizona plant on September 9, designed to process up to 25,000 metric tons per year of end-of-life products containing magnets. It recovers a magnet concentrate, not separated oxide. Cyclic plans oxide production at a South Carolina campus in 2028.
US Strategic Metals and Ionic Rare Earths announced plans for a 50/50 magnet recycling venture in Fredericktown, Missouri, with about $100 million in initial investment. Definitive agreements are targeted by the end of 2026.
Heavy Rare Earth Separation
On September 4 EXIM issued a letter of interest for up to $750 million for Aclara Resources' Project Dynamo, which EXIM says is not a commitment. On September 14 Ucore Rare Metals announced an additional $4.6 million Department of War award for samarium and gadolinium refining. Neither Louisiana plant is built, and trade press places Ucore's first Louisiana machine in the first half of 2027.
REalloys Sets Timeline
REalloys now targets about 150 metric tons per year of NdPr metallization capacity in the first quarter of 2027 and integrated monazite-to-metal production in the third quarter of 2027, according to an update on the appointment of COO Dr. Muhammad Imran. The Army describes its Tooele Army Depot heavy rare earth lease as a conditional award, and no final lease had been announced as of September 30.
Market Backdrop
Rare earth equities fell sharply. In the 30 days to September 28, MP Materials shares dropped about 21% and USA Rare Earth about 23%, a sector-wide move analysts tied to investors selling the theme. Over calendar September, MP fell closer to 12%, from about $54 to $47. Reuters reported on September 18 that China Rare Earth Group is in talks to acquire Shenghe Resources, which holds about 3% of MP. Shenghe denied a transfer is planned.
Track these companies and more, including production volumes, supply chain stage, and how the U.S. compares to China and its allies, on our interactive dashboard at dashboard.qtmagneticsolutions.com. Have feedback, corrections, or a facility update to report? Reach out to our team at QT Magnetic Solutions.
