USA Rare Earth Engages Fluor and WSP to Accelerate Texas Critical Minerals Production

2026-01-22 companies

Stillwater, Thursday, 22 January 2026.
Selecting Fluor and WSP to lead construction, USA Rare Earth targets an accelerated late 2028 production start for the strategic Round Top deposit, vital for domestic technology and defense.

Strategic Partnership Accelerates Round Top Development

In a decisive move to fortify the United States’ critical minerals supply chain, USA Rare Earth, Inc. (Nasdaq: USAR) announced today, January 22, 2026, the selection of Fluor Corporation and WSP Global Inc. as its Engineering, Procurement, and Construction Management (EPCM) partners [1]. This collaboration is specifically aimed at advancing the Round Top Heavy Rare Earth, Lithium, and Critical Minerals Project in Sierra Blanca, Texas [6]. The selection of these industry veterans follows a competitive evaluation of multiple vendor bids for the project’s Definitive Feasibility Study (DFS) [6]. According to Alex Moyes, PhD, Vice President of Mining & Processing at USA Rare Earth, Fluor and WSP possess the requisite experience to steer Round Top toward commercial delivery, a critical step for a project that includes essential elements such as yttrium, hafnium, zirconium, and gallium [6].

Operational Milestones and Production Targets

The company is utilizing an Accelerated Mine Plan to expedite the project’s timeline, with commercial production of heavy rare earth oxides now targeted for late 2028 [1]. This revised schedule represents a significant shift, bringing production forward by two years compared to previous expectations [2]. To support the Definitive Feasibility Study, USA Rare Earth intends to complete the first phase using results from solvent extraction (SX) pilot work currently underway at its Wheat Ridge, Colorado facility [1][6]. The company plans to operate this demonstration plant for a minimum of 2,000 continuous hours, with operations expected to conclude in October 2026 [1]. Concurrently, confirmatory and geotechnical drilling, alongside a heap leach optimization study, are scheduled for the first half of 2026 at the Round Top site to finalize mine design and engineering [6].

Market Reaction and Financial Outlook

The market has responded positively to the company’s operational updates and strategic clarity. Following the announcement on January 22, 2026, USA Rare Earth’s stock (USAR) climbed significantly, trading at $19.44, an increase of 1.75 (calculated based on a reported rise of $1.75) or 9.89% [8]. This surge aligns with a broader upward trend for the company, which has seen a year-to-date return of 48.66% [4]. Valuations for the company currently range between approximately $2.35 billion and over $2.7 billion, reflecting renewed investor optimism in the critical rare earth supply ecosystem [2][4]. Furthermore, the company is poised for broader institutional exposure, as it is set to join the Russell 2000 Index in February 2026, pending a standard review by FTSE Russell [4].

Transatlantic Supply Chain Expansion

Beyond its domestic efforts, USA Rare Earth is actively expanding its industrial footprint in Europe. On January 20, 2026, the company, through its subsidiary Less Common Metals (LCM) Europe SAS, announced plans to construct a metal and alloy production facility in Lacq, France [5]. This facility, with a planned capacity of 3,750 metric tons per annum, will be co-located with Carester SAS’s 1,600 metric ton per annum oxide processing facility, which is scheduled for commissioning in late 2026 [2][5]. USA Rare Earth acquired the UK-based LCM for $220 million in September 2025, positioning it as a key player in the midstream metal-making sector [7].

Government Backing and Strategic Integration

The French expansion is bolstered by substantial government support. The French government has committed to funding the facility through credits covering up to 45% of eligible equipment costs and up to €130 million (approximately $152.4 million) for real estate [3][5]. CEO Barbara Humpton emphasized that this development creates Europe’s first metal-making platform, enhancing the company’s integrated value chain to the benefit of both the United States and its allies [2][5]. This transatlantic approach complements the company’s “mine-to-magnet” strategy in the U.S., which integrates the Round Top feedstock with a magnet manufacturing plant in Stillwater, Oklahoma, to reduce reliance on Chinese supply chains [1][3].

Sources

Supply Chain Critical Minerals