USA Rare Earth this week achieved a milestone in its plan to create an integrated supply chain for the rarest metals for the United States and its allies by starting the construction of a new factory for the production of rare metals and magnets in Blacksburg, South Carolina. This factory, covering 800,000 square feet on a 124-acre site in the Billy Industrial Park in Cherokee County, is expected to create approximately 490 new manufacturing jobs in the area.
Reason for Choosing Blacksburg
USA Rare Earth announced that it selected Blacksburg after a thorough evaluation of nearly 275 potential sites across the country. South Carolina stood out from other options due to its skilled workforce in advanced manufacturing, reliable transportation infrastructure, proximity to customers and suppliers, and strong support from local and state partners. Barbara Hampton, the company's CEO, expressed her excitement about the project's launch, stating, “The start of operations in Blacksburg is a significant moment as it transforms our vision from plans on paper to infrastructure taking shape.”
Investment in Education
Additionally, USA Rare Earth also announced a donation of $250,000 to Spartanburg Community College to support the new SPARK center in Cherokee County. This center will assist in linking education, workforce development, and economic development, providing resources to support businesses. Henry McMaster, the Governor of South Carolina, said, “The strongest point of South Carolina has always been our people and their ability to make the things the world needs.”
This factory in Blacksburg will complement USA Rare Earth's magnet production operations in Stillwater, Oklahoma, where the company launched its first commercial production line earlier this year. Overall, Blacksburg and the development plans in Stillwater are expected to increase domestic NdFeB magnet production capacity to 10,000 tons per year.
These developments are part of the efforts by the United States and Europe to build domestic production of the rarest metals and magnets to reduce dependence on China, which controls about 90% of the global production of these critical minerals for energy transition, electronics, and defense. The South Carolina factory aims to achieve a production capacity of 6,400 tons per year of NdFeB permanent magnets and 5,000 tons per year of metal and alloy casting, with plans to commence operations by 2028.
