Operational RisksThere are material risks to operationalizing USAR's magnetics business, including challenges in magnet production, customer accumulation, and feedstock procurement.
Resource ConstraintsHeavy-rare earths are the company's costliest input, and initial magnets will be fabricated without them, impacting product capabilities.
Tariffs And CostsTariffs could increase the cost of finishing equipment by $2 million, adding to operational expenses.