USA Rare Earth has chosen Cherokee County in South Carolina as the site of a major new rare earth metal and magnet manufacturing operation.
The project represents a $1.2 billion investment and is expected to create approximately 490 high-skill manufacturing jobs in the region.
Company officials say the facility will play a key role in expanding domestic production of critical materials used across several strategic industries.
The new facility will be located in Bailey Industrial Park in Blacksburg, South Carolina. It will focus on producing neodymium-iron-boron (NdFeB) permanent magnets and the refined rare earth metals needed to manufacture them.
These magnets are among the strongest permanent magnets available and are widely used in electric motors, defense systems, medical devices, electronics, and renewable energy technologies.
The project adds another major component to USA Rare Earth’s growing supply chain network. The company is building an integrated system that covers mining, processing, refining, and magnet production. This approach is designed to reduce dependence on foreign suppliers and establish a secure source of rare earth materials for the US and its allies.
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Rare Earth Supply Chain Expansion
The South Carolina facility will work alongside USA Rare Earth’s existing magnet manufacturing plant in Stillwater, Oklahoma.
That facility launched its first commercial production line in March 2026 and serves as an important foundation for the company’s manufacturing operations. Together, the two sites are expected to become the center of the company’s magnet production activities in the US.
USA Rare Earth’s broader network stretches across several countries. It includes the Round Top heavy rare earth mining and processing project in Texas, a separation and processing facility in Colorado, and planned operations in Brazil, France, and the UK. These facilities are intended to support various stages of rare-earth production and processing.
Rare earth elements are a group of critical minerals essential for modern technologies. Although they are relatively abundant in nature, refining and processing them into usable materials requires specialized facilities and expertise. Building domestic capacity has become a priority for governments and industries seeking more resilient supply chains.
Production Targets and Economic Impact
Once operational, the Blacksburg facility is expected to produce 6,400 metric tons of NdFeB magnets each year. It is also designed to manufacture 5,000 metric tons annually of strip-cast products, metals, and alloys used in magnet production. These materials form a critical part of the manufacturing process for high-performance magnets.
When combined with planned expansions in Oklahoma, USA Rare Earth expects to reach domestic production capacity of 10,000 metric tons per year for both magnets and heavy rare-earth strip-cast, metal, and alloy products.
These targets align with the company’s long-term business strategy and anticipated government financing support. The company has already started engineering work and equipment procurement for the South Carolina project.
Construction activity at the site is expected to begin in the coming months. Commissioning of the facility is targeted for 2028. Once fully operational, the plant is expected to become one of the most significant rare earth magnet manufacturing centers in North America.
South Carolina was selected after an extensive review of multiple states. The company evaluated locations based on available incentives, energy supply, transportation infrastructure, workforce availability, and proximity to customers. Access to grants, tax credits, and exemptions also played an important role in the decision.
The chosen site benefits from its location along the Interstate 85 corridor. The region already hosts a strong advanced manufacturing sector and offers access to experienced industrial workers. Duke Energy has also confirmed energy delivery to support the facility’s future operations.
Strategic Importance for US Manufacturing
The magnets and refined metals produced in Blacksburg will support industries considered vital to economic growth and national security. These include defense, aerospace, semiconductors, artificial intelligence, medical technology, clean energy, and advanced manufacturing. Demand for rare earth magnets continues to increase as these sectors expand.
USA Rare Earth Chief Executive Officer Barbara Humpton said South Carolina provided the workforce, infrastructure, and partnerships needed to accelerate the project. She described the facility as an important link in the company’s global rare earth and magnet supply chain. According to Humpton, the investment helps bring advanced manufacturing capabilities closer to home.
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South Carolina Governor Henry McMaster welcomed the investment and highlighted its economic benefits. He said the project strengthens the state’s manufacturing sector while creating new opportunities for local workers. The investment also reinforces South Carolina’s position as a major destination for advanced industrial development.
The project arrives at a time when governments and manufacturers are seeking greater control over critical mineral supply chains. Expanding domestic production capacity can help reduce supply risks and support growing demand for advanced technologies.
