If You Buy USA Rare Earth Right Now, Could It Make You a Millionaire?

USA Rare Earth (USAR-4.57%) is an American mining company focused on helping the U.S.

build a domestic supply chain for rare-earth magnets.

Put differently, USA Rare Earth wants to help the U.S.

Top 10 Stocks to Buy Now › USA Rare Earth ( USAR -4.57% ) is an American mining company focused on helping the U.S.

build a domestic supply chain for rare-earth magnets.

Put differently, USA Rare Earth wants to help the U.S.

government break its dependence on Chinese rare-earth mining companies.

Currently, China accounts for about 70% of the world's rare-earth extraction and 90% of its rare-earth processing.

It also produces over 90% of the world's permanent magnets, underscoring its complete dominance in the rare-earth magnet market.

But does USA Rare Earth actually stand a chance in this cost-intensive industry?

Can it scale its polymetallic Round Top deposit in Texas, which is currently under development, and its magnet factory in Oklahoma into profitable businesses?

Or will USA Rare Earth, like so many mining companies before it, fall prey to the intense cyclicality of metal prices and the brutal capital demands of turning ore into a functioning supply chain?

Let's take a closer look at this potential millionaire-making metal stock and see what it's building.

The bullish case for USA Rare Earth is pretty straightforward.

In a nutshell, the company is trying to build one of the few domestic rare-earth magnet supply chains in the U.S.

Expand NASDAQ : USAR USA Rare Earth Premium Feature Moneyball Superscore 50 /100 Today's Change ( -4.57 %) $ -0.54 Current Price $ 11.28 Key Data Points Market Cap $4.2B Market cap calculated using publicly traded shares outstanding only.

Does not include unlisted, private, or dual-class non-traded shares.

Day's Range $ 11.26 - $ 11.64 52wk Range $ 11.26 - $ 35.92 Volume 78.5K Avg Vol 12.6M Gross Margin -5406.47% Theoretically, it has the assets to become America's rare-earth champion.

Round Top is considered one of the largest rare-earth deposits in the U.S., with 16 of the 17 rare-earth elements.

Its magnet factory in Oklahoma is expected to produce about 1,200 metric tons of magnets to start, then ramp up to 10,000 metric tons.

The combination of these two facilities -- the mine in Texas, and the magnet factory in Oklahoma -- forms two key links in USA Rare Earth's "mine-to-magnet" supply chain.