City of Stillwater approves $7 million incentive for USA Rare Earth manufacturing facility
Jun. 7—The Stillwater City Council, acting in its capacity as the Stillwater Economic Development Authority, has approved a $7 million incentive for a new company with plans to move into a currently vacant commercial building located at 100 W. Airport Rd. that formerly housed Total Energy.
USA Rare Earth LLC will eventually employ at least 100 people at its Stillwater facility, which will be the first of its kind in the U.S.
The factory will manufacture powerful magnets from rare earth elements that the company will be mining in Texas. It's part of a federal priority to establish a reliable supply chain of essential parts for the electronic equipment most of us use every day.
Rare earth magnets are vital for a wide variety of consumer electronics from cell phones to medical equipment. They are also essential components of electric vehicle motors.
Mayor Will Joyce emphasized that although the City is taking a risk, the money will go into improving the building. That means the money will stay in Stillwater instead of leaving town or going to shareholders, he said.
Deputy City Manager Melissa Reames explained that the company is paying $9.9 million in cash for the building. Because it's a cash purchase, the City of Stillwater will be listed as the first lien holder, much like a mortgage.
If the company fails, the city will be able to take possession of the improved building and will have a tangible asset to sell, she said.
