USA Rare Earth Invests $1.2 Billion in New Magnet Manufacturing Plant in South Carolina

On a bright morning in early September, bulldozers began to churn the soil at Bailey Industrial Park in Blacksburg, South Carolina. The $1.2 billion project, announced by USA Rare Earth, will eventually span roughly 800,000 sq ft on a 124‑acre site and become a cornerstone of America’s push for a home‑grown rare‑earth supply chain.

When the plant is up and running—targeted for 2028—it will churn out about 6,400 metric tons of sintered neodymium‑iron‑boron (NdFeB) permanent magnets each year, plus another 5,000 metric tons of strip‑cast metal and alloy. Those numbers translate into roughly 10,000 metric tons of domestic magnet capacity when you combine the new Blacksburg facility with USA Rare Earth’s existing line in Stillwater, Oklahoma.

CEO Barbara Humpton described the milestone as “moving our vision from plans on paper to infrastructure taking shape.” She added that the venture is as much about people as it is about metal—highlighting a $250,000 pledge to Spartanburg Community College’s new SPARK Center, which will help train the skilled workforce the plant demands.

The financing backbone comes largely from the U.S. Department of Commerce’s CHIPS Act, which is earmarking up to $1.6 billion for the project—$277 million in direct grants and $1.3 billion in senior‑secured loans. In choosing Blacksburg over roughly 275 other sites, USA Rare Earth cited the region’s strong manufacturing talent pool, reliable power, and logistics advantages, as well as enthusiastic state and local support.

Why does this matter? Rare‑earth metals and the high‑performance magnets they become are critical to defense, aerospace, semiconductors, electric‑vehicle propulsion, renewable‑energy equipment, and even emerging AI hardware. Today, the United States leans heavily on foreign sources—especially China—for many of those materials. By adding a major production hub on American soil, USA Rare Earth hopes to loosen that chokehold and create a more resilient, secure supply chain.

Construction partners include Clark Construction Group, Frampton Construction, and Trammell Crow Company, all working to keep the project on schedule and within budget. If all goes well, the plant will not only supply magnets for domestic manufacturers but also signal a broader shift toward self‑sufficiency in critical minerals for the United States.