USA Rare Earth Inc. (NASDAQ: USAR) announced plans to build a rare earth metal and magnet manufacturing facility in Cherokee County, South Carolina. The company expects the project to create approximately 490 manufacturing jobs and require a $1.2 billion investment.

The facility will be located in Bailey Industrial Park in Blacksburg and is designed to produce 6,400 metric tons annually of neodymium-iron-boron permanent magnets and 5,000 metric tons of strip-cast metal and alloy. The operation will complement the company's existing magnet manufacturing facility in Stillwater, Oklahoma, which began commercial production in March 2026.

Combined with planned expansion at the Stillwater facility, USA Rare Earth expects total domestic production capacity to reach 10,000 metric tons annually of rare earth magnets and 10,000 metric tons of heavy rare earth strip-cast, metal and alloy. Engineering work and equipment procurement are underway, with site work expected to begin in the coming months and commissioning targeted for 2028.

The company selected South Carolina after evaluating multiple states, prioritizing factors including incentive packages, reliable power supply, skilled workforce availability, and proximity to defense and aerospace customers. Duke Energy confirmed energy delivery to the facility.

"Cherokee County is the next critical link in the rare earth and magnet value chain we're building across the United States, the United Kingdom, Europe and around the globe," said CEO Barbara Humpton.

The facility will serve defense, aerospace, semiconductor, medical, artificial intelligence, energy, and advanced manufacturing industries. USA Rare Earth operates across the rare earth value chain from mining to magnet manufacturing through facilities in multiple countries including the United States, United Kingdom, France, and Brazil.