USA Rare Earth Inc. (NASDAQ: USAR) said on Monday it has agreed to acquire Less Common Metals (LCM), a UK-based producer of rare earth metals and alloys, in a deal aimed at accelerating its mine-to-magnet strategy.
The acquisition would establish an end-to-end rare earth supply chain for the company and secure access to high-quality metals and strip cast alloys for global customers, USAR said.
The company added that the deal will support the development of its planned magnet manufacturing facility in Oklahoma.
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Under the deal, USAR will pay $100 million in cash and issue 6.74 million shares of its common stock to acquire LCM.
Michael Blitzer, Chairman of USAR, said, “The acquisition of LCM is a bold and transformative leap forward for our Company and the domestic rare earth industry.”
LCM holds a unique position as the only proven ex-China producer of both light and heavy rare earth permanent magnet metals and alloys at scale at its 67,000 square foot production facility in Cheshire, U.K.
Following the transaction, LCM will continue to expand its global customer base with a portfolio of rare earth and critical metals and alloys.
It will also supply neodymium iron boron (NdFeB) metal and strip cast alloy to USAR’s Stillwater, Oklahoma magnet facility, once production begins.
LCM’s products are used in advanced magnet manufacturing and are supplied to customers in the defence, automotive, electric vehicle, industrial and other sectors across the United States, Britain, France, Germany, Japan and Taiwan.
The deal is expected to close in the fourth quarter of 2025, pending customary closing conditions and regulatory clearance in the United Kingdom.
USA Rare Earth reported cash and cash equivalents of $121.8 million as of June 30, 2025.
USAR said it secured a $125 million equity investment from an existing shareholder at $15 per share to help fund its growth strategy alongside current cash.
Price Action: USAR shares were trading higher by 6.78% to $18.5 premarket at last check Monday.
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