USA Rare Earth Begins Construction on Blacksburg Facility

The 800,000-square-foot plant represents a $1.2 billion investment in domestic mineral processing.

Updated on Oct. 28, 2026 in Manufacturing

Heavy steel beams rising from red clay earth at a large industrial construction site in South Carolina. — USA Rare Earth has begun construction on a $1.2 billion mineral processing facility in Blacksburg, South Carolina, to bolster domestic supply chains. AI Illustration. Upload story photo >

Live Poll

Should the U.S. prioritize domestic manufacturing to reduce reliance on foreign-controlled supply chains?

USA Rare Earth began construction on a new $1.2 billion manufacturing facility in Blacksburg, South Carolina, in September 2026. The plant is designed to bolster domestic supply chains for rare-earth materials used in defense and electric vehicles.

Why it matters

This facility aims to address U.S. supply chain weaknesses by reducing reliance on foreign suppliers like China. By integrating domestic refining with mineral extraction from Texas and Brazil, the company seeks to secure long-term domestic self-sufficiency.

The new facility spans 800,000 square feet and represents a total capital investment of $1.2 billion. This infrastructure is intended to supply rare-earth minerals and magnets to critical domestic industries.

The players

USA Rare Earth

This company operates as a key developer of rare-earth mining and processing capabilities within the United States.

Serra Verde

This Brazil-based mining entity was acquired by USA Rare Earth to help secure a steady supply of mineral resources.

The details

The plant combines mineral resources from company-owned mining sites in Texas and the acquired Brazil-based miner Serra Verde to create a vertically integrated supply chain. The company plans to target the U.S. government as its core customer for materials used in missile defense systems.

Construction on the Blacksburg plant officially began in September 2026.
China implemented a ban on rare-earth material exports to the U.S. last year.
Relations between the U.S. and China are expected to remain adversarial for the next decade.

Market Landscape

The project marks a significant departure from the historical reliance on Chinese processing hubs that have long controlled global rare-earth markets. By building vertical integration, the company positions itself to challenge dominant foreign supply chains and gain market share in defense sectors.

The development strengthens domestic production capacity, which could indirectly stabilize supply chains for electric vehicles and defense technology. Local residents in Blacksburg may see long-term shifts in the regional labor market due to the facility's massive physical footprint.

The takeaway

The move highlights the growing corporate strategy of vertical integration to mitigate the risks of geopolitical trade volatility. Investors and industry observers should watch how domestic sourcing affects production costs for critical components like magnets and defense-grade electronics.