$1.2 billion mega-facility to boost America’s domestic magnets production

USA Rare Earth has broken ground on a $1.2 billion rare earth metal and magnet manufacturing facility in Blacksburg, South Carolina. The approximately 800,000-square-foot facility will sit on a 124-acre site at Bailey Industrial Park in Cherokee County and is expected to create approximately 490 high-skill, high-wage manufacturing jobs in South Carolina’s Upstate region, according to a press release from USA Rare Earth. Once operational, the company is targeting an annual production capacity of 6,400 metric tons (7,055 tons) of sintered neodymium-iron-boron (NdFeB) permanent magnets and 5,000 metric tons (5,512 tons) of strip-cast metal and alloy. The company expects commissioning to begin in 2028. Billions going into rare earth Barbara Humpton, chief executive officer of USA Rare Earth, called Blacksburg “an important moment.” “It moves our vision from plans on paper to infrastructure taking shape.” “We’re building the capabilities America needs to make critical rare earth materials and magnets at home, while making a long-term investment in the people and communities that will help us do it,” Humpton added. USA Rare Earth first announced the $1.2 billion Blacksburg project on June 2, according to IndustrialSage. The U.S. Department of Commerce is backing the project with up to $1.6 billion in CHIPS Act support, including $277 million in direct grants and $1.3 billion in senior secured loans. The company selected Blacksburg after evaluating nearly 275 potential sites nationwide. It praised South Carolina’s advanced manufacturing workforce, power availability, transportation infrastructure, proximity to customers and suppliers, and support from state and local partners as reasons for its selection. A $250,000 contribution to Spartanburg Community College was also announced to support its new SPARK Center in Cherokee County. The center will connect education, workforce development and economic development while supporting the region’s talent pipeline. “This Blacksburg community has the infrastructure, talent and manufacturing heritage to support what we’re building,” said David Bushi, senior vice president of manufacturing at USA Rare Earth. “We intend to build something here that creates opportunity locally and strengthens American manufacturing for decades to come.” Rare earths deemed essential The facility forms part of USA Rare Earth’s plan to develop a rare earth supply chain spanning mining, processing, separation, metal and alloy production and permanent magnet manufacturing. The company said rare earth metals and permanent magnets serve as essential inputs for industries including defense, aerospace, semiconductor manufacturing, physical AI, mobility, energy and healthcare. USA Rare Earth said the United States currently depends heavily on foreign sources for many of these materials and manufacturing capabilities. At the same time, China controls significant portions of the global rare earth supply chain. The Blacksburg plant will complement USA Rare Earth’s magnet manufacturing operation in Stillwater, Oklahoma, where the company commissioned its first commercial production line earlier this year. Together, Blacksburg and a planned Stillwater expansion are expected to provide 10,000 metric tons (11,023 tons) of annual domestic NdFeB magnet manufacturing capacity. “A secure rare earth supply chain isn’t built with a single mine or a single factory. It requires rebuilding every link,” said Gregory Bowman, chief global policy officer at USA Rare Earth. “Blacksburg adds critical manufacturing capacity to that broader platform and brings the United States closer to producing more of the materials and magnets our industries depend on outside of Chinese control,” Bowman added. USA Rare Earth is working with Clark Construction Group, Frampton Construction, Trammell Crow Company, and other engineering and technology partners to bring the Blacksburg facility online. Get the latest in engineering, tech, space & science - delivered daily to your inbox.Originally from LA, Maria Mocerino has been published in Business Insider, The Irish Examiner, The Rogue Mag, Chacruna Institute for Psychedelic Plant Medicines, and now Interesting Engineering.