USA Rare Earth, Inc. (NASDAQ:USAR) saw its stock climb 5% on Wednesday after the company revealed it will begin commercial output at its Round Top heavy rare earths project in Texas two years ahead of schedule.
The firm now anticipates launching commercial operations in late 2028, accelerating development of what it calls the nation’s richest known source of heavy rare earth elements, along with gallium and beryllium. The revised timeline follows positive results from recent solvent-extraction pilot work, which the company said enabled the faster progress.
“Beginning commercial production at Round Top two years earlier than anticipated would be an exciting milestone made possible by the team’s technical capabilities, process knowledge, and ingenuity,” said Barbara Humpton, Chief Executive Officer of USA Rare Earth.
To support the accelerated pace, USA Rare Earth plans to bring its Hydromet demonstration plant in Colorado online in early 2026. The facility will operate five solvent-extraction circuits continuously for between 2,000 and 4,000 hours, generating key operating data for the design of the future commercial plant. These circuits will focus on recovering heavy rare earths such as dysprosium and terbium, both of which are critical for high-performance permanent magnet production.
The company expects this phased approach to reduce costs by tens of millions of dollars while keeping it on track to complete its definitive feasibility study by early 2027. USA Rare Earth’s broader supply chain also includes a 310,000-square-foot magnet manufacturing facility in Stillwater, Oklahoma, which the firm says will become the largest metal-and-alloy production and strip-casting operation outside China.