USA Rare Earth Taps Fluor, WSP for Key US Critical Minerals Project
Partnership with tier-1 firms Fluor and WSP marks a significant step in de-risking the flagship Round Top heavy rare earth project in Texas, aiming to build a domestic supply chain.
USA Rare Earth (NASDAQ: USAR) has taken a significant step toward the commercialization of its flagship Round Top project in Texas, announcing the selection of industry heavyweights Fluor Corp. (NYSE: FLR) and WSP Global Inc. as its Engineering, Procurement, and Construction Management (EPCM) partners.
The move is a critical milestone for the $2.67 billion company, signaling a major de-risking of the project's execution and advancing its timeline to become a cornerstone of the U.S. domestic critical minerals supply chain. The partnership enlists two of the world's leading engineering firms to bring the ambitious heavy rare earth and critical minerals project to fruition.
According to the company's announcement, the selection follows a comprehensive evaluation process. Both Fluor and WSP have extensive experience in successfully delivering complex mining, processing, and large-scale infrastructure projects globally. This expertise is seen as vital for tackling the development of Round Top, a unique deposit rich not only in high-demand heavy rare earths but also lithium and other tech-critical elements like gallium and hafnium.
"Fluor and WSP are key partners with the experience and expertise required to move Round Top toward commercial delivery," said Alex Moyes, PhD, Vice President of Mining & Processing at USA Rare Earth. "Their teams know how to deliver complex mining and processing projects, and that matters as we work to bring a secure, domestic supply of heavy rare earth elements... into production."
This development comes at a time of heightened geopolitical focus on critical mineral supply chains, which are currently dominated by China. The Round Top project is positioned as a strategic asset to reduce U.S. reliance on foreign imports for minerals essential to defense, green energy, and high-technology manufacturing.
The engagement of top-tier EPCM partners lends significant credibility to the project's projected path to production. Fluor has a storied history in the sector, having executed challenging mining projects from the Escondida copper mine in Chile to, more recently, rare earth processing facilities in Australia and the U.S.. The firm has established a dedicated team to focus on the growing demand for critical minerals.
Under the agreement, Fluor and WSP will advance the Definitive Feasibility Study (DFS) for the project. USA Rare Earth is pursuing an "Accelerated Mine Plan," with the first phase of the DFS leveraging data from ongoing solvent extraction pilot work. A demonstration plant in Colorado is scheduled to run for over 2,000 hours, with operations expected to conclude by October 2026, providing crucial data for the study's second phase. The company is targeting commercial production of heavy rare earth oxides by late 2028.
Shares of USA Rare Earth traded around $19.33 on Wednesday. The stock has seen significant volatility over the past year, trading between a 52-week low of $5.56 and a high of $43.98, reflecting both the high-risk, high-reward nature of mine development and the shifting macro-economic landscape. The consensus among five covering analysts is a 'Buy' rating with an average price target of $27.20.