USA Rare Earth produces first commercial-grade yttrium

USA Rare Earth (Nasdaq: USAR) produced yttrium commercially for the first time, another step in the miner’s efforts to create a rare earth value chain capable of serving Western markets.

The Oklahoma-based company on Wednesday announced its first commercial pour of 2N–2N5 (99%–99.5% purity) yttrium metal through its Less Common Metals unit at a United Kingdom facility.

This milestone puts USA Rare Earth among a limited number of producers of commercial-grade yttrium metal operating outside of China, the company said.

Yttrium, one of the so-called “heavy” rare earths, plays a vital role in a range of high-performance applications. It’s a key material in thermal barrier coatings used on turbine blades and other high-temperature aerospace components. The metal is also used in electronics, energy systems, lasers, superconductors and advanced ceramics.

Prices for the metal surged at least 1,500% last year after China, the world’s top rare earth producer, placed export restrictions on seven minerals including yttrium.

Mine-to-magnet strategy

“Producing commercial-grade yttrium metal at LCM marks a significant step in strengthening our position as a global leader in rare earth materials and technology,” USA Rare Earth CEO Barbara Humpton said in the statement.

The company is currently looking to build a fully integrated rare earth and permanent magnet supply chain across the United States, UK and European markets. The strategy is backstopped by the massive Round Top deposit in Texas, which it plans to bring into production in 2028, and a magnet manufacturing plant in Stillwater, Oklahoma, where it recently commissioned the first production line. The company is also considering building a magnet plant in France.

The U.S. projects have already received the backing of the Trump administration, which earlier this year provided $1.58 billion to USA Rare Earth in exchange for an equity stake of between 8% and 16%.

“Combined with our planned yttrium extraction at Round Top and our oxide processing capabilities, this positions USA Rare Earth to serve the aerospace, defense and advanced manufacturing customers who can no longer rely solely on Chinese supply,” Humpton said.

USA Rare Earth says its yttrium production capability is built around controlled refining and purification processes designed to deliver consistent, high-purity material suitable for integration into industrial applications.

Shares of USA Rare Earth rose 8.3% to $19.95 in U.S. trading Friday, in line with a broader market surge after Iran announced the reopening of the Strait of Hormuz. The company’s market capitalization stands at about $4.4 billion (C$6 billion).