By Salini Krishnan and Sonny Jimerson
SIERRA BLANCA, Texas : USA Rare Earth has entered into a definitive agreement to acquire all outstanding shares of Texas Mineral Resources Corp. (TMRC) for approximately $73 million, the companies announced Tuesday. The all-stock transaction consolidates 100% control of the Round Top heavy rare earth and critical minerals project under a single entity, clearing the path for the first vertically integrated domestic supply chain of its kind in North America.
Under the terms of the agreement, USA Rare Earth (USARE) will issue approximately 3.82 million shares of its common stock to acquire the remaining 18.6% ownership stake it did not already control. The move signals an aggressive shift from exploration to development as the company prepares to break China’s long-standing dominance over the permanent magnet market.
The transaction is expected to close by the third quarter of fiscal 2026.
Consolidating the Crown Jewel
The strategic calculus here isn’t subtle: control is everything. By eliminating the joint-venture structure, USA Rare Earth gains unfettered authority over the operational, financing, and development timelines of the Round Top deposit.
Located roughly 85 miles southeast of El Paso, the Round Top project is widely considered the most significant source of heavy rare earth elements (HREEs) on U.S. soil. While other domestic projects focus on light rare earths, Round Top boasts a unique rhyolite host rock containing 15 of the 17 rare earth elements, alongside a suite of high-value byproducts including lithium, gallium, hafnium, and zirconium.
Caption: A diverse team of senior geologists and field engineers, including Hispanic and African American professionals, reviewing core samples at the Round Top project site in West Texas.
The 950-acre mineral lease, coupled with prospecting rights covering more than 9,000 surrounding acres, provides the scale necessary for a multi-decade operation. According to the company, the acquisition streamlines the decision-making process as they move toward a definitive feasibility study (DFS).
The “Mine-to-Magnet” Mandate
USA Rare Earth is not just building a mine; it is building a manufacturing ecosystem. The consolidation of Round Top is the foundation of a “mine-to-magnet” strategy that spans three states.
- Extraction: Round Top, Texas.
- Processing: Rare earth oxide and metal production facilities in Colorado.
- Manufacturing: A permanent magnet production plant in Stillwater, Oklahoma.
This vertical integration is designed to insulate the U.S. from the volatility and geopolitical leverage of the global rare earth market, which is currently centered in East Asia. The strategic necessity of this move is underscored by the 2026 Critical Minerals Scoreboard, which highlights the growing vulnerability of Western manufacturing to supply chain “throttling.”
“This is the inflection point,” said one industry analyst familiar with the deal. “You cannot have a domestic EV industry or a secure defense sector if you are sending your raw ore to China for processing and then buying back the finished magnets. USA Rare Earth is closing that loop.”
Technical Scale and Timeline
The numbers coming out of the Round Top projections are massive.
The company expects to reach commercial production by 2028. By 2030, the project is slated to scale to a throughput of approximately 40,000 metric tons of rare earth and critical minerals per day.
That’s not a typo. That is a industrial-scale offensive against the status quo.
To manage this complexity, USA Rare Earth has enlisted heavyweights Fluor Corp. and WSP Global as their primary engineering and construction partners. The focus is currently on the optimization of a continuous ion exchange (CIX) processing method, which promises to be more environmentally sustainable and cost-effective than traditional solvent extraction.
Caption: Technical specialists from Fluor Corp. and WSP Global, representing a mix of diverse backgrounds and genders, collaborate on a digital twin model of the future processing facility.
Geopolitical Context: The Fight for Non-China Supply
The timing of this buyout coincides with a tightening of the legislative screws in Washington D.C. Recent developments, including the US Senate passing new critical minerals laws, have provided a tailwind for domestic projects that can prove 100% domestic origin.
China currently controls over 85% of global rare earth processing capacity. For heavy rare earths: the ones essential for high-temperature magnets in fighter jets and EV motors: that control is nearly absolute. Round Top’s high concentration of dysprosium and terbium makes it a strategic asset rather than just a commercial mine.
However, building this capacity is not without risks.
The mining industry has seen dozens of “China-killers” fail at the processing stage. Processing rare earths is notoriously difficult and chemically intensive. USA Rare Earth is betting that its Colorado facility can master the metallurgy where others have stumbled. If they succeed, they will become the primary alternative to the Chinese state-owned enterprises.
Diversified Mineral Streams
While rare earths get the headlines, Round Top’s lithium and gallium deposits are increasingly relevant to the bottom line.
As highlighted in our Lithium Forecast 2026, the demand for battery-grade materials continues to outpace new Western supply. Round Top’s ability to produce lithium as a byproduct of its rare earth extraction could significantly lower its overall cost-curve, making it one of the most resilient projects in North America.
Furthermore, the recent grounding of the first new U.S. aluminum smelter in 50 years has put the spotlight back on domestic industrial independence. Rare earths, much like aluminum, are the hidden pillars of modern infrastructure.
Caption: A diverse group of chemical engineers at the Colorado processing pilot plant monitoring the separation of heavy rare earth oxides.
Financial Implications and Market Reaction
The $73 million valuation for TMRC’s remaining stake was met with cautious optimism by the market. TMRC shareholders will receive USARE stock, tying their fortunes to the successful execution of the “mine-to-magnet” vision.
For USA Rare Earth, the path to a public listing or further Tier-1 capital raises is now significantly cleaner. Investors typically shy away from projects with fragmented ownership or complex royalty disputes. By bringing everything under one roof, USARE has essentially “de-risked” the corporate structure ahead of the heavy capital expenditure (CAPEX) phase.
There are still hurdles. The definitive feasibility study must prove the economics of the 40,000-ton-per-day target. Permitting in the U.S. remains a gauntlet, though the project’s location on state-owned land in Texas provides a more streamlined regulatory environment than federal land in the neighboring Western states.
What Happens Next
The clock is now ticking toward the 2028 production goal.
With 100% control, USA Rare Earth is now solely responsible for its successes or failures. The industry will be watching the DFS closely for updated CAPEX estimates and recovery rates.
In a world where resource nationalism is rising: notably in regions like Kazakhstan and Chile: a wholly-owned, 100% domestic project in a mining-friendly jurisdiction like Texas is a rare bird indeed.
For investors and operators, the message is clear: The race for domestic critical mineral independence just moved from the boardroom to the drill rig.
Caption: A diverse workforce of equipment operators and construction managers at a town hall meeting in Sierra Blanca, discussing the local economic impact of the Round Top project.
