USA Rare Earth, Inc. (Nasdaq: USAR) broke ground on a rare earth metal and magnet manufacturing facility in Blacksburg, South Carolina, representing an approximately $1.2 billion investment, according to a company press release.

The facility, located on a 124-acre site in Bailey Industrial Park in Cherokee County, will span approximately 800,000 square feet. The company said it expects to create roughly 490 manufacturing jobs in the region. Production targets include 6,400 metric tons per annum (tpa) of sintered neodymium-iron-boron (NdFeB) permanent magnets and 5,000 tpa of strip-cast metal and alloy, with commissioning targeted to begin in 2028.

The Blacksburg facility is intended to complement USA Rare Earth's existing magnet manufacturing operation in Stillwater, Oklahoma, where the company commissioned its first commercial production line earlier this year. Combined with a planned expansion at Stillwater, the company said the two sites are expected to provide 10,000 tpa of domestic NdFeB magnet manufacturing capacity.

USA Rare Earth said it evaluated nearly 275 potential sites before selecting Blacksburg. Clark Construction Group and Frampton Construction are serving as design-builder through a joint venture, with Trammell Crow Company as developer.

The company also announced a $250,000 contribution to Spartanburg Community College to support a new SPARK Center in Cherokee County focused on workforce development and economic development.

"Breaking ground in Blacksburg is an important moment because it moves our vision from plans on paper to infrastructure taking shape," said Barbara Humpton, Chief Executive Officer of USA Rare Earth.

USA Rare Earth operates across mining, metal-making, alloy production and magnet manufacturing, with assets in the United States, Brazil and the United Kingdom.