Usa Rare Earth, Inc. · NASDAQ:USAR
Usa Rare Earth — SPAC Merger (February 2025)
46 slides from Usa Rare Earth's SPAC merger presentation, Feb 12, 2025
Slide 1: Investor Presentation
h]0C]] IB0Cd0IC ItYt0w (YhYy ɸɶɸɻ
Slide 2: About This Presentation
About This Presentation This presentation and any accompanying materials (together with any oral statements made in connection herewith, this “Presentation”) is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to
Slide 3: Forward-looking statements
¯Ü¼‚¯Á›Ø ʞɸʟ 3 These forward - looking statements are based upon estimates and assumptions that, while considered reasonable by IPXX, USARE, and their respective management, as the case may be, are inherently uncertain . These forward - looking statements are provided for illustrative purposes o
Slide 4: Additional information and participants in solicitation
¯Ü¼‚¯Á›Ø ʞɹʟ 4 Securityholders of IPXX and equity holders of USARE may obtain a copy of the preliminary or definitive proxy statement/prospectus, once available, as well as other documents filed by IPXX with the SEC that will or may be incorporated by reference in the proxy statement/prospectus,
Slide 5: IçØ Á¯ÜܯÈ ¯Ü ãÈ ›Üã‚Ž¼¯Ü ‚ hʒ]ʒ
IçØ Á¯ÜܯÈ ¯Ü ãÈ ›Üã‚Ž¼¯Ü ‚ hʒ]ʒ Ø‚Ø› ›‚Øã Á‚©Â›ã ÜçÕÕ¼ö ‚¯Â ÜçÕÕÈØã¯Â© ã› ¨çãçØ› Üã‚㛠Ȩ ›Â›Ø©öʍ ÁÈŽ¯¼¯ãöʍ ‚• ‚ã¯È‚¼ Ü›çدãö
Slide 6: Unique value creation opportunity
h¯×ç› t‚¼ç› Ø›‚ã¯È IÕÕÈØãç¯ãö We’re Building a 310k sqf Rare Earth Magnet Manufacturing Facility to Support a $41B (1) Market • Revenue potential up to an estimated $700M - $800M in revenue (2) at full 4,800 ton nameplate annual capacity in Oklahoma • Commissioning of initial line to s
Slide 7: Our story is about execution, not technology
IçØ ]ãÈØö 0Ü ŽÈçã õ›çã¯ÈÂʍ CÈã C›ô d›Âȼȩö We know how to build - out and commission the plant. Potential customers want to secure their supply chains - we have the answer. Mining a Low - Cost, High Value Option We believe the relatively low spend to establish a preliminary feasi
Slide 8: (‚Üã ©ØÈô¯Â© Á‚ع›ã ›õ՛㛕 ãÈ ÈÂã¯Âç› ¨ÈØ ã›
(‚Üã ©ØÈô¯Â© Á‚ع›ã ›õ՛㛕 ãÈ ÈÂã¯Âç› ¨ÈØ ã› Â›õã •›‚•›
Slide 9: Rare earth minerals and magnets are critical to the United States
Y‚Ø› ‚Øã B¯Â›Ø‚¼Ü ˬ B‚©Â›ãÜ Ø› د㯂¼ ãÈ ã› h¯㛕 ]ã‚ã›Ü (1): Expected Rare Earth Metals Market value by 2032; Vantage Market Research, July 31, 2024, “Rare Earth Metals Market to Reach USD 15.8 Billion by 2032.” Catalytic converters Fiber optic cables Wind Power Robotics
Slide 10: Magnet demand driven by commercial and defense sectors
B‚©Â›ã ›Á‚• دó›Â Žö ÈÁÁ›Ø¯‚¼ ‚• ›¨›ÂÜ› ]›ãÈØÜ (1) : Estimated demand calculated by management from data provided by industry reports. (2) : U.S. Department of Defense, March 11, 2024, “Department of Defense Releases the President's Fiscal Year 2025 Defense Budget.” (3) : U.S.
Slide 11: Ex-China magnet supply and demand
õ ʣ ¯Â‚ B‚©Â›ã ]çÕÕ¼ö ‚• ›Á‚• 0ÁŽ‚¼‚› ʞɷʟ (1): The Impermanence of Permanent Magnets, Paulson Institute, 2021; The Status of Chinese Permanent Magnet Industry and R&D Activities, AIP Publishing, 2017. 11 B‚©Â›ã ]çÕÕ¼ö Içãܯ•› Ȩ ¯Â‚ ¯Ü VØȸ›ã›• ãÈ ÈÂã¯Âç› ãÈ
Slide 12: Rare earth oxide market
˚ɷɼ ʞɷʟ Y‚Ø› ‚Øã Iõ¯•› B‚ع›ã (1) : Expected Rare Earth Metals Market value by 2032; Vantage Market Research, July 31, 2024, “Rare Earth Metals Market to Reach USD 15.8 Billion by 2032.” (2) : Statista, Demand for rare earth oxides worldwide in 2025 by end use. (3) : Benchmark quarterly R
Slide 13: Other critical metals in Round Top deposit
Gallium Beryllium Iã›Ø d› B›ã‚¼Ü ¯Â YÈç• dÈÕ ›ÕÈܯ㠕 Semiconductors - commercial and defense • Nuclear weapons • Photovoltaic cells • Aerospace • Wireless infrastructure, cable transmission • Optical fibers • Nuclear power • X - rays • Radio communications • Military radar • MRIs •
Slide 14: ¯Â‚ •ÈÁ¯Â‚ã›Ü د㯂¼ Ø‚Ø› ›‚Øã Á¯Â¯Â©ʍ ÕØÈ›Üܯ© ‚•
¯Â‚ •ÈÁ¯Â‚ã›Ü د㯂¼ Ø‚Ø› ›‚Øã Á¯Â¯Â©ʍ ÕØÈ›Üܯ© ‚• Á‚©Â›ã Á‚Â稂ãçد© ‚ã ‚ ã¯Á› Ȩ دܯ© ©›ÈÕȼ¯ã¯‚¼ ã›ÂܯÈÂÜ ‚• ã‚د¨¨Üʍ ô¯ ¯ÂØ›‚Ü›Ü ã› Ø¯Ü¹ ãÈ ÜçÕÕ¼ö ¨ÈØ Ø¯ã¯‚¼ ÈÁÁ›Ø¯‚¼ ‚• •›¨›ÂÜ› ã›Âȼȩ¯›Ü
Slide 15: Current US administration committed to changing course
çØØ›Âã h] •Á¯Â¯ÜãØ‚ã¯È ÈÁÁ¯ã㛕 ãÈ ‚©¯Â© ÈçØÜ› B‚ØÈ YçŽ¯È ]›Ø›ã‚Øö Ȩ ]ã‚ã› 2024 Senate confirmation hearing "If we stay on the road we’re on right now, in less than 10 years , virtually everything that matters to us will depend on whether China allows us to have it or
Slide 16: China's domination of rare earth metals and magnets
¯Â‚ʭÜ ÈÁ¯Â‚ã¯È Ȩ Y‚Ø› ‚Øã B›ã‚¼Ü ‚• B‚©Â›ãÜ ʞɷʟ (1) : U.S. Department of Energy, February 24, 2022, “Rare Earth Permanent Magnets.” (2) : U.S. Department of Commerce, “The Effect of Imports of Neodymium - Iron - Boron (NdFeB) Permanent Magnets on the National Security.” China’s
Slide 17: Geopolitics are driving increasing trade restrictions
*›ÈÕȼ¯ã¯Ü ‚Ø› دó¯Â© 0ÂØ›‚ܯ© dØ‚•› Y›Üãدã¯ÈÂÜ (1): Center for Strategic & International Studies, August 20, 2019, “Rare Earths: Next Element in the Trade War?” ]ã؂㛩¯ tç¼Â›Ø‚Ž¯¼¯ã¯›Ü ‚• ]çÕÕ¼ö ‚¯Â ¯ÜØçÕã¯È =¯¹›¼ö ¯¨ hÜ ÈÂã¯Âç›Ü 0ãÜ Y›¼¯‚› È ¯
Slide 18: Building one of the largest US rare earth magnet facilities
We are rapidly moving to build one of the more flexible and largest rare earth magnet manufacturing facilities in the United States
Slide 19: USARE locations
h] Y‚Ø› ‚Øã =È‚ã¯ÈÂÜ Metal & Magnet Production Stillwater, OK Round Top: Rare Earth Deposit Sierra Blanca, TX Research & Development Wheat Ridge, CO 19
Slide 20: Plan to build out and supply critical magnets
ɹɷɶ¹ ]×ʒ(ãʒ B‚©Â›ã B‚Â稂ãçد© V¼‚Âã 篼• I¨¨ ‚• Y篩 ]çÕÕ¼ö ‚¯Â V¼‚¯© h•›Øô‚ö dÈ ]çÕÕÈØã B‚Â稂ãçد© w¯¼› w› 篼• hÕÜãØ›‚Á ‚Õ‚Ž¯¼¯ã¯›Ü Magnet Manufacturing • Commissioning of first 1 , 200 tons per annum of nameplate capacity targeted by early
Slide 21: Magnet Manufacturing
MAGNET MANUFACTURING py», USA | Rare Earth
Slide 22: Building a significant magnet manufacturing facility
篼•¯Â© ‚ ]¯©Â¯¨¯‚Âã B‚©Â›ã B‚Â稂ãçد© (‚¯¼¯ãö Current Status Stillwater Facility 310k sq. foot facility in Stillwater, Oklahoma ~$48M est. equipment and facility value (1) 40 - acre lot provides expansion potential Easy highway access Lower - cost, well - educated workforce Business
Slide 23: Differentiated platform with proven technology
¯¨¨›Ø›Â㯂㛕 V¼‚ã¨ÈØÁ ô¯ã VØÈó›Â d›Âȼȩö Magnet Value Remanence : Magnet strength, in terms of energy, density Coercivity : Magnet ability to withstand demagnetization forces, mostly heat Target Industries Focused on margin via performance We expect to produce a wide range of magnet sp
Slide 24: Magnet production process
Magnet Production Process Hydrogen Decrepitation Coarse grinding Jet Milling Press into Blocks Cut to size Sintering Furnace Cut and hard Grind Finish Grind to Customer specs Surface Treatment (coating) Processing Finishing Grain Boundary Diffusion (when needed)
Slide 25: What we are building for
w‚ãw›Ø›ç¯¼•¯Â©(ÈØ 1 • We will serve a diverse set of industries and customers • Our focus is on smaller customers to start – walk before we run • Flexible finishing – wide range of sizes and shapes • State of the art equipment from Hitachi already on site o Proven capability of producing magn
Slide 26: Innovations Lab
0ÂÂÈó‚ã¯ÈÂÜ =‚Žʌ د㯂¼ Yˬ Y›ÜÈçØ› process x Customized Magnet Recipe Development x Innovative Processing Techniques Lab Benefits x State of the Art Equipment x Rapid Prototyping x Largely mimics full production x Expert Team x Collaborative R&D x Full Customer Support 1 2 3 4 5 6 1 2 3
Slide 27: Round Top
ROUND TOP LL, UsA| Rare Earth
Slide 28: Round Top: working to unlock tremendous potential value
YÈç• dÈÕʌ wÈع¯Â© dÈ h¼ȹ dØ›Á›Â•ÈçÜ VÈã›Â㯂¼ t‚¼ç› h¯×ç› wÈؼ• ʣ ¼‚ÜÜ Y‚Ø› ‚Øã ›ÕÈܯã 15 of 17 rare earth elements • Significantly higher potential for dysprosium and terbium production than other operating and proposed REE projects • Includes all heavy rare earths in
Slide 29: Round Top: accessible deposit
Sparsely populated area, but reasonably near larger populations ~85 miles from El Paso Nearest town is Sierra Blanca, population ~500 Access to existing infrastructure Major railroad line nearby with a nearby spur line Close to Interstate 10 and El Paso Strong local and state - level support Active
Slide 30: High-level mining process
.¯© =›ó›¼ B¯Â¯Â© VØÈ›ÜÜ ɷ (1): Current engineered approach, could change in the future Mining and Crushing Heap Leach Solvent Extraction (Primary Impurity Removal) Solvent Extraction (Bulk Rare Earth Recovery) Precipitation (Secondary Impurity Removal) Tech Metals Recovery Continuous Ion Exc
Slide 31: Path to Round Top production
V‚ã dÈ YÈç• dÈÕ VØÈ•çã¯È Flowsheet – under development Prefeasibility study Definitive feasibility study Mine construction Pilot plant – heap leach and hydromet plant High Level Steps to Production Round Top is a long - term, high - risk, capital - intensive project • Many risks along th
Slide 32: Wrap Up
WRAP UP LL, UsA| Rare Earth
Slide 33: Stipulated timelines
Üã¯Á‚㛕 d¯Á›¼¯Â›Ü • Mine : Timing of buildout contingent on the successful completion of the flowsheet and subsequent feasibility studies (1) : “tpa” refers to tons per annum (nameplate capacity). (2) : Future potential revenue will be dependent on product mix and market pricing at that time. Th
Slide 34: Near-term potential value milestones
C›‚Ø ʣ d›ØÁ VÈã›Â㯂¼ t‚¼ç› B¯¼›ÜãÈÂ›Ü 34 Lab commissioning in Q1 2025 – begins launch of concerted sales effort Magnets Customer announcements leading up to plant commissioning Commissioning of plant by 1H 2026 First revenue 1H 2026 Any government grant or loan announcements Round Top Announc
Slide 35: Indicative financial information
0•¯‚ã¯ó› (¯Â‚¯‚¼ 0¨ÈØÁ‚ã¯È ʞɷʟ Investments could be funded through a variety of sources , including public equity, debt, customer prepayments and/or investments, government funding, among others $200 $160 $125 Avg. Sales Price per Kg (2) 4,800 $960M 4,800 $770M Nameplate capacity (tpa) 4,8
Slide 36: Industry support via government grants and tax credits
0•çÜãØö ]çÕÕÈØã ó¯‚ *Èó›ØÂÁ›Âã *Ø‚ÂãÜ ‚• d‚õ Ø›•¯ãÜ Congress Bipartisan Rare Earth Magnet Manufacturing Production Tax Credit Act (HR 2849) Department of Energy Manufacturing and Energy Supply Chains (MESC) Notice of Intent to provide a Funding Opportunity Announcement (FOA) for Cri
Slide 37: USARE is a differentiated asset in a nascent industry
h]Y 0Ü ‚ ¯¨¨›Ø›Â㯂㛕 Üܛ㠯 ‚ C‚Ü›Âã 0•çÜãØö Source: Public Company Filings. (1) : Neodymium and Praseodymium. (2) : MP Materials Company website. (3) The Mountain Pass deposit is made up of an estimated 83% of cerium and lanthanum, two of the most common light rare earths (
Slide 38: Leadership team
=›‚•›ØÜ¯Õ d›‚Á dÈ•‚ö Bob Fredette | Director of Magnet Operations • 40 years of experience in the powdered metals and magnetics industry, with significant expertise in process/applications engineering magnetic assemblies • A recognized expert in magnet materials and processes, including Sintere
Slide 39: Post-transaction board of directors
VÈÜã ʣ dØ‚ÂÜ‚ã¯È Ȃؕ Ȩ ¯Ø›ãÈØÜ 39 Michael Blitzer. Chairman . Mr. Blitzer is currently the Chief Executive Officer and Chairman of Inflection Point Acquisition Corp. II (IPXX). Previously, he was the Chief Executive Office of Inflection Point Acquisition Corp, which later merged with In
Slide 40: Transaction Overview
TRANSACTION OVERVIEW Di, UsA| Rare Earth
Slide 41: IPXX overview
• IPXX is a special purpose acquisition company formed for the purpose of consummating a business combination transaction and currently has ~$24M held in a trust account • The Proposed Business Combination would enable USARE equity holders to receive shares in a publicly listed US company and provid
Slide 42: Transaction summary
dØ‚ÂÜ‚ã¯È ]çÁÁ‚Øö Transaction Highlights Estimated Sources and Uses ($M) Deal Structure • Business combination between USARE and IPXX • USARE’s existing shareholders will roll 100% of their existing equity holdings into the Combined Company • Transaction implies ~$902.6M pro forma enterprise val
Slide 43: Risk Factors
RISK FACTORS LL, UsA| Rare Earth
Slide 44: Risk Factors
Y¯Ü¹ (‚ãÈØÜ 44 The risks presented below are non - exhaustive descriptions of certain of the risks related to the business of USARE, IPXX, the Combined Company, and the Proposed Business Combination, and such list is not exhaustive . The list below has been prepared solely for purposes of inclusi
Slide 45: Risk Factors (2)
Y¯Ü¹ (‚ãÈØÜ ʞɸʟ 45 ● Our success depends on developing and maintaining relationships with local communities and stakeholders. ● Since its inception, the Company has generated negative operating cash flows and we may experience negative cash flow from operations in the future. Our consolidated f
Slide 46: Risk Factors (3)
Y¯Ü¹ (‚ãÈØÜ ʞɹʟ 46 ● If, before distributing the proceeds in the Trust Account to IPXX’s public shareholders, IPXX files a bankruptcy or insolvency petition or an involuntary bankruptcy or insolvency petition is filed against IPXX that is not dismissed, the claims of creditors in such proceedin