USA Rare Earth (USAR) Stock Rises on Quantum Partnership With Pasqal

TLDR

• USA Rare Earth (USAR) rose 2.9% pre-market Thursday after announcing a quantum machine learning partnership with Pasqal (PSQL) and Riven Systems.
• The project aims to develop better separation molecules for processing rare earth elements more efficiently.
• The collaboration targets the separation of Mixed Rare Earth Carbonate into individual oxides, a process currently dominated by Chinese producers.
• Pasqal’s Neutral Atom quantum processing unit will benchmark quantum machine learning models against classical computing models.
• Riven Systems will run automated experiments to generate training data for the machine learning models.

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USA Rare Earth (USAR) stock ticked up 2.9% in pre-market trading on Thursday after the company announced a three-way partnership with quantum computing firm Pasqal (PSQL) and AI chemistry company Riven Systems.

USA Rare Earth Inc, USAR

The goal is to use quantum machine learning to find new molecules that can separate rare earth elements more efficiently than what is currently available.

The project focuses on a specific and costly problem: breaking down Mixed Rare Earth Carbonate into individual oxides. Right now, Chinese producers dominate that process.

USAR stock was trading at $15.10 at the time of writing, down 1.95% on the day, and has fallen 93% over the past year. The company carries a market cap of just $16.6 million.

How the Technology Works

Riven Systems will run automated lab experiments to build training data for machine learning models. Those models will focus on extractant selectivity, which means figuring out which chemicals best bind to specific rare earth elements.

Pasqal will then use its Neutral Atom quantum processing unit to test quantum machine learning models against classical computing models. The aim is to help USA Rare Earth pick the best extractants faster.

The feedstocks for the project include USA Rare Earth’s Round Top mine in Sierra Blanca, Texas, along with third-party mixed rare earth carbonates and recycled cuttings from magnet manufacturing.

Alex Moyes, Senior Vice President of Upstream at USA Rare Earth, said the rare earth industry outside Asia has long struggled with the separation step. “The Chinese dominate this capability, especially for vital heavy rare earths such as dysprosium, terbium, and yttrium,” he said.

Moyes added the goal is to “replace years of trial-and-error” with faster, more competitive chemistry discovery.

About the Partners

Pasqal was founded in 2019 and builds neutral-atom quantum computers with a full software stack. It is headquartered in France and operates globally. PSQL stock fell 4.12% on the day.

Riven Systems is a New York-based company that focuses on AI for industrial chemistry.

USA Rare Earth operates across the rare earth value chain, from mining through to magnet manufacturing, with facilities in the United States, Brazil, and the United Kingdom.

The company owns Less Common Metals, a producer of rare earth metals and alloys, and is developing magnet manufacturing capacity in Stillwater, Oklahoma.

USA Rare Earth generated $2.25 million in revenue over the last twelve months and holds a gross profit margin of nearly 16%, according to InvestingPro.

The partnership targets smaller, lower-cost, and less energy-intensive processing facilities if the new separation molecules prove effective.