Arnold Magnetic Technologies Announces New USA Rare Earth Agreement
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neodymium-iron-boron (NdFeB)medical
Neodymium-iron-boron (NdFeB) is a family of very strong permanent magnets made from the rare-earth metal neodymium combined with iron and boron; they pack high magnetic power into small, lightweight pieces. Investors care because these magnets are essential components in electric vehicle motors, wind turbines, electronics and other clean-energy technologies, so their supply, price and geopolitical concentration can materially affect costs, production capacity and company valuations.
samarium-cobalt (SmCo)medical
Samarium-cobalt (SmCo) is a hard magnetic alloy made from the rare earth metal samarium and cobalt that produces very strong, stable magnets capable of operating at high temperatures. Think of it as a tiny but powerful engine part used in precision motors, aerospace components, and some electronics; its performance and limited supply can affect manufacturing costs, product performance and supply-chain risk, making it relevant to investors watching materials, industrials and technology sectors.
permanent magnetstechnical
Permanent magnets are materials that produce a steady magnetic field without needing electricity, like a fridge magnet that always sticks. Investors care because these magnets are key parts in electric motors, generators and sensors across industries such as electric vehicles, wind turbines and consumer electronics, so changes in their cost, availability or technology can affect manufacturing costs, product performance and company profits.
export controlsregulatory
Government rules that limit or require permission for shipping certain goods, technology or services across borders, often to protect national security or enforce trade policy. For investors, export controls matter because they can block or slow sales, disrupt supply chains, prevent companies from accessing key markets or components, and create fines or delays — similar to a traffic light that can stop or slow a business’s ability to move products internationally.
Partnership strengthens U.S. rare earth magnet supply chain and supports domestic manufacturing resilience
ROCHESTER, N.Y.--(BUSINESS WIRE)--
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.
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.
