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USA Rare Earth Gains Ground on Recycling Breakthrough

Shares of USA Rare Earth climbed 5% to $18.04 on Tuesday after the company confirmed it successfully produced commercial-grade dysprosium and neodymium-praseodymium oxides from recycled magnets. This technical milestone marks a rare capability for a Western firm to refine heavy rare earth elements outside of Asia.

USA Rare Earth Gains Ground on Recycling Breakthrough

The production took place at the company's facility in Wheat Ridge, Colorado, utilizing magnet scrap sourced from their manufacturing plant in Stillwater, Oklahoma. These refined samples are now headed to the company’s British subsidiary, Less Common Metals, for qualification. Once cleared, the materials will be converted into metals to feed domestic magnet production lines.

By incorporating recycled scrap into its supply chain, the company aims to reduce its reliance on traditional raw mineral imports. Management noted that further processing campaigns are already in motion, drawing on resources from the Round Top project in Texas and the Pela Ema mine in Brazil. This move signals a push toward establishing a fully integrated, non-Asian rare earth supply chain.

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