Arnold Magnetic Technologies Announces New USA Rare Earth Agreement
Partnership strengthens U.S. rare earth magnet supply chain and supports domestic manufacturing resilience
Arnold Magnetic Technologies Corporation ("Arnold"), a subsidiary of Compass Diversified (NYSE:CODI), and a leading global manufacturer of high-performance magnets and precision components, and USA Rare Earth, Inc. (NASDAQ:USAR) announced a mutual sales and distribution agreement that strengthens the domestic supply chain for high-performance rare earth permanent magnets in the United States.
Partnership announcement
Under the agreement, each company is authorized to sell and distribute the other's products while remaining independent contractors in a non-exclusive partnership. Arnold will offer USAR's processed and refined neodymium-iron-boron (NdFeB) materials and finished magnets, while USAR will offer Arnold's finished permanent magnets produced from samarium-cobalt (SmCo) and neodymium-iron-boron (NdFeB) materials. Each party remains responsible for product quality, warranties, and any product-related liabilities for the goods it manufactures, and neither company will share in the proceeds from the other's resale of products to end users.
Strategic importance for U.S. supply
Rare earth magnets such as SmCo and NdFeB are critical components in electric vehicles, wind turbines, advanced industrial equipment, and defense systems. However, global supply chains for these materials remain highly concentrated outside the United States. Recent export controls and licensing requirements affecting rare earths and magnet materials have highlighted the vulnerability of U.S. manufacturers to supply disruptions and price volatility, especially for magnet materials used in high-performance and defense-related applications.
By pairing Arnold's established magnet manufacturing capabilities with USAR's U.S.-based NdFeB processing and refining, the partnership advances a more resilient American supply chain, from refined material through finished magnet products. This collaboration directly supports ongoing U.S. policy initiatives and trade measures aimed at strengthening domestic production of rare earth magnets, reducing dependence on foreign suppliers, and mitigating national security risks linked to critical mineral imports.
About Arnold Magnetic Technologies
Based in Rochester, NY, with an operating history of over 130 years, Arnold is a leading global manufacturer of engineered solutions for a wide range of specialty applications and end-markets, including aerospace and defense, general industrial, motorsport, oil and gas, medical, and energy. From its Technology Center and manufacturing facilities located in the United States, the United Kingdom, Switzerland, Thailand, and China, the company produces engineered magnetic assemblies in addition to high-performance permanent magnets, precision foil products, and highly loaded composites that are mission critical in motors, generators, sensors, and other systems and components. Based on its long-term relationships, the company has built a diverse and blue-chip customer base totaling more than 2,000 clients worldwide.
For more information on Arnold, visit https://www.arnoldmagnetics.com.
About USA Rare Earth, Inc. (USAR)
USA Rare Earth, Inc. (NASDAQ:USAR) is building a fully integrated rare earth and permanent magnet supply chain across the United States, United Kingdom, and Europe. Through its ownership of Less Common Metals Ltd. (LCM) and development of magnet manufacturing capacity in Stillwater, Oklahoma, USAR operates across the value chain—from heavy rare earth processing to metal-making, alloy production, and neodymium magnet manufacturing. By combining domestic feedstock from the Round Top deposit with advanced processing technologies, recycling capabilities, and an expanding European footprint, USAR is establishing a secure, sustainable, Western-aligned supply of materials essential to defense, electrification, robotics, energy, and advanced manufacturing.
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