USA Rare Earth (USAR) 46th Annual William Blair Growth Stock Conference summary

State of the company and industry context

• Emphasizes the need to reshore rare earth capabilities across the value chain due to China's dominance in processing, which poses national and industrial security risks.

• Went public 14 months ago, raised $75 million initially, followed by $1.5 billion through a Department of Commerce LOI, and executed several strategic acquisitions and investments.

• Expanded from a plan of 3,000–5,000 metric tons of magnets to targeting 10,000 metric tons each of oxides, metal, and magnets domestically, with new facilities in Oklahoma and South Carolina.

• Government partnerships include significant funding and incentives from U.S. federal and state agencies, as well as engagement with the French government for European expansion.

• The company is executing a fully integrated mine-to-magnet strategy, aiming to grow all segments of the value chain simultaneously.

Project development and operational plans

• Serra Verde in South America is ramping to 6,400 metric tons per year of TREO within six months; Round Top in Texas is advancing toward a definitive feasibility study, targeting completion by year-end and S-K 1300 publication in Q1 next year.

• Metal and magnet-making capabilities are being established in the U.S. over the next 2.5–3 years, with two facilities to ensure business continuity.

• Carester in France provides unique heavy rare earth processing and recycling, with a supply and offtake agreement and technology licensing for future expansion.

• LCM (Less Common Metals) is ramping up to 2,000 metric tons in the UK and over 3,000 metric tons in France, with plans to transfer expertise to U.S. operations.

• Stillwater, Oklahoma, is scaling from 600 to 10,000 metric tons of magnets by mid-2029, with three lines and 5,000 metric tons of metal-making capacity; Blacksburg, South Carolina, will add similar capacity.

Supply chain, customer engagement, and market dynamics

• Customer demand is strong, especially for non-China supply; initial agreements will be short-term, evolving to long-term offtakes as capacity is proven.

• Serra Verde and Round Top have distinct teams and extraction methods; Serra Verde produces mixed rare earth carbonate, while Round Top focuses on heavy rare earths like dysprosium and terbium.

• Feedstock for magnet production will be sourced internally, with potential excess available for third parties depending on product mix.

• Equipment for new facilities is sourced outside China to ensure compliance and security, with lead times up to 14 months.

• Rare earth pricing remains volatile due to China's restrictions and limited non-China supply, resulting in a bilateral, non-indexed market.