USA Rare Earth Secures Nasdaq Listing Post SPAC Merger

Deal News | Mar 13, 2025 | Globenewswire

USA Rare Earth Secures Nasdaq Listing Post SPAC Merger

USA Rare Earth, a company focused on establishing a domestic supply chain for rare earth magnets and critical minerals, has completed its business combination with Inflection Point Acquisition Corp. II, a special purpose acquisition company. This strategic move, approved by IPXX shareholders, also includes an upsized Private Investment in Public Equity (PIPE) funding of nearly $50 million. The company's common stock and public warrants will soon commence trading on Nasdaq under the new symbols USAR and USARW. USA Rare Earth is positioning itself as a key player in supplying rare earth magnets domestically, crucial for various industries such as defense, robotics, and electric vehicles. The firm aims to operate its neo magnet facility by early 2026, eventually scaling to a production capacity of 5,000 metric tons per annum. The company's strategic assets include the Round Top Mountain deposit in Texas, known for its diverse rare earth elements, demonstrating the firm's critical role in strengthening U.S. national security amidst rising geopolitical tensions.

Sectors

  • Rare Earth Mining
  • Financial Markets
  • Manufacturing

Geography

  • United States – USA Rare Earth is establishing supply chains and production capabilities within the United States, which is central to the article.
  • Texas – Mentioned as the location of the Round Top Mountain deposit, a key asset for USA Rare Earth's future mining operations.
  • Oklahoma – The site of USA Rare Earth's neo magnet manufacturing facility currently under construction.

Industry

  • Rare Earth Mining – The article revolves around the mining and processing of rare earth elements, which are critical for various technologies and industries.
  • Financial Markets – The article discusses the business combination through a SPAC merger and subsequent public listing on Nasdaq, highlighting activities in financial markets.
  • Manufacturing – USA Rare Earth is establishing manufacturing capabilities for rare earth magnets, crucial for a wide range of industries.

Financials

  • 50 million – Total PIPE investment funding raised, with an $8 million upsize.

Participants

NameRoleTypeDescription
USA Rare Earth, Inc.TargetCompanyA company focused on developing a domestic supply chain for rare earth magnets and critical minerals.
Inflection Point Acquisition Corp. IIBidding CompanyCompanyA special purpose acquisition company (SPAC) partnering with USA Rare Earth for the business combination.
Cohen & Company Capital MarketsFinancial AdvisorCompanyExclusive financial advisor, lead capital markets advisor, and private placement agent to USA Rare Earth.
White & Case LLPLegal AdvisorCompanyServing as legal counsel to Inflection Point Acquisition Corp. II.
King & Spalding LLPLegal AdvisorCompanyServing as legal counsel to USA Rare Earth.
Gateway GroupPR AdvisorCompanyServing as investor relations and public relations advisor for the transaction.
Joshua BallardCEO of USA Rare EarthPersonChief Executive Officer of USA Rare Earth, providing insights into the company's strategic direction.
Michael BlitzerCEO of IPXXPersonChief Executive Officer of Inflection Point Acquisition Corp. II, providing perspectives on the merger's significance.