Growing trade tensions with China have spurred the U.S. to develop a self-sufficient supply chain of critical minerals, with USA Rare Earth aiming to become a key player by acquiring Less Common Metals and starting production at its Oklahoma facility soon.

Critical minerals, especially rare-earth magnets, are crucial for defense, electric vehicles, renewable energy, and electronics. USA Rare Earth is leading the charge in establishing a sovereign “mine-to-magnet” supply chain to reduce reliance on China.

To secure its supply chain, USA Rare Earth acquired Less Common Metals for $100 million in cash and shares. The company is also developing its Round Top Project in Texas, targeting commercial production by late 2028.

While USA Rare Earth is making strides, investors should be cautious as the company has no history in commercial operations or operating revenue. However, it has secured over $400 million in funding and is in communication with the White House.

As the U.S. focuses on securing domestic supplies of critical minerals, USA Rare Earth presents a speculative investment opportunity for those interested in the development of U.S. rare-earth production.

Read more at Yahoo Finance: America Needs Rare Earth Magnets, and USA Rare Earth Is Positioning Itself to Fill the Gap