USA Rare Earth selects Cherokee County for $1.2B plant

A global player in rare earth materials says it has selected Cherokee County for a $1.2 billion operation that will create nearly 500 jobs in the state.

It will be the first operation in South Carolina for USA Rare Earth Inc., which works in rare earths, critical minerals and advanced materials.

With operations in Europe, the United Kingdom and the United States, as well as a planned acquisition of a major rare earth mine in Brazil, USA Rare Earth is building a global rare earth and permanent magnet value chain to serve advanced manufacturing for both commercial and defense technologies supporting the U.S. and its allies, according to a news release from the South Carolina Department of Revenue.

China currently manufactures approximately 92% of the world’s sintered NdFeB permanent magnets, according to USA Rare Earth.

“Cherokee County is the next critical link in the rare earth and magnet value chain we’re building across the United States, United Kingdom, Europe and around the globe,” USA Rare Earth CEO Barbara Humpton said in the news release. “South Carolina offered the workforce, the infrastructure and the partners we needed to move quickly. With this investment, we’re bringing home the advanced manufacturing capabilities that America and its allies depend on, from the factory floor to the front lines.”

The new facility, which will be located at Bailey Park in Blacksburg, will produce neodymium-iron-boron (NdFeB) permanent magnets and refined rare earth metals, according to the release. This South Carolina advanced manufacturing campus will perform critical functions including electrolysis, metallothermic reduction, strip casting, jet milling, dry pressing, sintering, heat treatment, machining and coating.

“Two hundred and fifty years ago, Cherokee County helped turn the tide of the Revolutionary War and today we are proud to once again stand on the front lines of American independence by welcoming USA Rare Earth to the Bailey Park,” Cherokee County Councilman Tim Spencer said in the release. “This project strengthens our nation’s future by reducing our dependence on China for critical rare earth minerals while bringing jobs, investment and opportunity to Cherokee County.”

According to a separate announcement from Duke Energy, USA Rare Earth’s announcement highlights the impact of Duke Energy’s Site Readiness Program, which helped prepare the Bailey Industrial Site for major economic development. Through upfront due diligence, infrastructure planning and site marketing, the program made Bailey more competitive for companies looking to move quickly on a new project, according to Duke.

Since 2005, the program has helped attract significant investment across South Carolina, and Bailey is the latest example. After completing the site-readiness process, the Cherokee County property was better positioned to compete for transformative projects – culminating in USA Rare Earth’s announcement that it will build a facility there, bringing a $1.2 billion investment and 490 new jobs in one of the county’s biggest economic wins.

“Duke Energy is proud to help bring USA Rare Earth to Cherokee County and strengthen America’s domestic rare earth supply chain,” Duke Energy South Carolina President Tim Pearson said in the release. “Through our close collaboration with state and local economic development partners, we worked to position this site with the upfront diligence, coordination and energy planning that companies need to move with confidence and speed. As we continue to prioritize reliable power at the lowest possible cost for our customers, we stand ready to welcome more industries like this to call South Carolina home.”

The Duke Energy Site Readiness Program includes detailed site assessments by partners in site selection and engineering to identify opportunities, address challenges and improve a property’s competitiveness before a prospect is on the table, according to the energy company. That proactive work can help communities shorten timelines, reduce uncertainty and better position sites like Bailey for major industrial announcements.

Operations at the USA Rare Earth site are expected to be online in April 2028.

“South Carolina continues to attract investments that strengthen our economy and create meaningful opportunities for our people,” Gov. Henry McMaster said in the release. “USA Rare Earth’s $1.2 billion investment and the creation of approximately 490 new jobs will have a significant impact on Cherokee County and reinforce our state’s position as a leader in American manufacturing.”

The Commerce Department’s Coordinating Council for Economic Development approved job development credits related to the project.