Former Secretary of State Mike Pompeo Joins USA Rare Earth to Bolster Rare Earths Supply Chain Goals

Mike Pompeo Joins USA Rare Earth

In a dramatic affirmation/recognition of the interest of the US Federal Government in the creation of a domestic American total rare earth permanent magnet supply chain, USA Rare Earth LLC, a private company, announced yesterday that former Secretary of State and, before that, CIA Director, Mike Pompeo has joined the company as a “strategic advisor.” USA Rare Earth is developing a total rare earth permanent magnet supply chain, anchored on a mineral deposit in Texas, over which it has acquired control from Texas Mineral Resources Corp. (OTCQB: TMRC).

After graduating from the United States Military Academy (West Point) in 1986 and serving in the active military for 5 years, Mr. Pompeo left the army, as a captain, and enrolled in Harvard Law School, from which he graduated and then went to work as a lawyer in Washington, D.C. After that role, he created first an aerospace components manufacturing group and then one to supply the oilfield industry. A successful sale of those ventures was followed by his entry into politics. He was elected to the U.S. House of Representatives from Kansas from 2011 to 2017. He was first appointed to head the CIA by President Trump, and then to the post of Secretary of State.

I don’t think that there is an American better qualified to lead a critical minerals company through the labyrinths of the US Federal Government, the Department of Defense, and the industrial rare-earth-enabled components industry than Mr. Pompeo, who, in traditional Washington-speak, is referred to as “Secretary Pompeo” and is well known and well regarded among all three of the above-mentioned groups.

USA Rare Earth has the only fully equipped rare earth permanent magnet manufacturing site in America today in Stillwater, Oklahoma. It is not yet operational or staffed. The company’s challenge will be to first produce or obtain the rare earth metals, alloys, and magnetic powder feedstocks to supply that plant.

If those hurdles are overcome then USA Rare Earth will be the first, or among the first, rare earth permanent magnet manufacturers in the US in a generation.

Even, if operationally successful, the Company will still need to obtain purchase orders for the magnets.

I doubt that USA Rare Earth could have found a better door opener to both the military and civilian rare earth permanent magnet markets than Secretary Pompeo.

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9 responses

  1. Kevin Belter Avatar
    Kevin Belter

    Thank you for writing.

    If operationally successful?
    It will be for certain. No evidence at all it wont!

    USA Rare Earth currently has only 80% “control” – an important fact not stated.

    Both the mine and the plant will be operational before 2024 – important point not included.

    The USARE mou with AREC is a critical component not mentioned…

    1. joe o Avatar
      joe o

      certain? what exactly have these guys accomplished in last 5 yrs? stock price sure doesnt think so

    2. Rare Earth IPO Avatar
      Rare Earth IPO

      Any idea on when Rare Earth comes to the public market via IPO?

  2. Rare Earths Investor Avatar
    Rare Earths Investor

    Thanks for both the article and the comment. RE is a fascinating sector and getting more and more interesting as we progress to 2024 and the US election.

    USARE is certainly now focused on its magnet-making aims and seems to have lessoned its original concern with RE feedstock and processing. The article brings out well the problems the company faces with garnering feedstock for its magnet making as well as where the major financing will be coming from (looks like its intended SPAC is no longer an option today). Then we have the vital magnet offtakes which if documented would help with the other two concerns. However, MP has a similar US-based intent and now we also have VAC to build a facility (with GM support) in the US. Interestingly, we have yet to see the US gov’ make a strategic move at this stage of the RE value chain (outside of Trump’s Urban Mining/Noveon support).

    As to Mr. Pompeo, he may be a boon for garnering REpublican interest in this endeavor but he is likewise a prominent lightning rod for Democrat opposition. Should he announce a Presidential run then I am unsure as to how this may limit his ability to visibly support a specific company.

    Again, a complex and fast-moving sector with many interesting RE entities for investors to consider but likely only a few prime movers to dominate.

    GLTA – REI

    1. Kevin Belter Avatar
      Kevin Belter

      Make no mistake USA Rare Earth is especially focused on the actual mining of round top. Suggest you look deep into this mine and when it will produce – may just be some of the best free advice you’ve ever gotten. Also – i also think the domestic mined and produced magnets will be welcomed by the democratic party regardless if Pompeo is a strategic advisor.

      1. Rare Earths Investor Avatar
        Rare Earths Investor

        KB thanks for the reply.

        Unfortunately, USARE is private so as a RE investor this entity’s emergence has little present retail relevance. However, I try to use public information to inform my DD and I am interested in the sector. Therefore, one comment I would offer is that the bottom line their original mine, processing and magnet intentions found no private financing interest for their intended $½ + billion SPAC going back to early 2021. In comparison e.g., MP did, so RE investors can use this contrast in company situations as one criterion to assist their DD in relation to one aspect of financing.

        Clearly, there are lots of other considerations that could be discussed here, as you indicate. However, I don’t think using another’s comments section would be appropriate to deep dive all these issues.

        Again, thanks to the article writer and yourself for highlighting this company.

        GLTA – REI

        1. Rare earth Avatar
          Rare earth

          Do you have any insight into when USA Rare Earth might go public as an IPO?

          1. Alex Richmond Avatar
            Alex Richmond

            Please see a report I published some time ago on Texas Mineral Resources, the 20% owner of the mine, who is a public entity.


  3. joe o Avatar
    joe o

    Might as wells look into ucore. Commissioning commercial demo plant as of now, testing RSX ( rapid solvent tech) separation tech
    need 55 million to build specialty metals complex may get funding from Louisiana, OEMS and feds for it.
    Market cap actually reasonable TMRC been talking PFS for round top for 7 yrs a little late?

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