USA Rare Earth and Moog Sign Memorandum of Understanding for Delivery of U.S.-Made Neo Magnets for Data Center Cooling Solutions
- Strategic partnership with Moog, a leader in precision motion and fluid control systems
- Addresses growing demand in AI data center cooling solutions market
- Progress in establishing domestic rare earth supply chain
- Production capabilities already demonstrated through Innovations Lab
- Commercial production on track to begin in early 2026
- Production won't begin until early 2026, indicating no immediate revenue from this partnership
- MOU is non-binding and subject to successful prototype qualification
- Actual production volumes and financial terms not disclosed
Insights
USAR's MOU with Moog establishes domestic neo magnet supply for data center cooling amid surging AI demand.
This memorandum of understanding between USA Rare Earth and Moog represents a strategic positioning in the critical rare earth magnets supply chain, specifically targeting the rapidly expanding data center cooling market. The timing is particularly significant as AI infrastructure growth drives unprecedented demand for high-performance cooling solutions.
The agreement leverages USAR's recently commissioned Innovations Lab in Stillwater, which will enable prototype development and customer qualification processes well ahead of their planned commercial production in early 2026. This methodical approach allows USAR to refine their neodymium magnet specifications for Moog's CoreMotion™ technology while establishing production protocols.
The strategic value extends beyond just one customer relationship. This partnership addresses a critical national security concern by reshoring production of neo magnets - currently dominated by non-U.S. suppliers. For context, these specialized magnets are essential components in precision motors required for liquid cooling systems that manage the intense heat generated by AI computational infrastructure.
While still in the qualification stage, this agreement signals market validation for USAR's domestic rare earth magnet production capabilities. The company appears to be methodically building a customer base in preparation for its commercial facility launch, with this Moog partnership potentially serving as a reference case for additional customers in defense, automotive, and renewable energy sectors that require similar high-performance magnetic materials.
USAR to Qualify its Magnets for use in Moog’s CoreMotion™ Liquid Coolant Distribution Pumps
STILLWATER, Okla., June 16, 2025 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) (USAR or the Company) today announced it has signed a memorandum of understanding (MOU) with Moog Electric Motion Solutions (Moog) for delivery of the Company’s neo magnets, of which USAR plans to begin production in early 2026. Moog Electric Motion Solutions provides precision motion and fluid control systems and will begin prototyping USAR’s neo magnets for use in Moog’s high-performance coolant distribution pumps used in data centers around the world.
The MOU is the latest in a series of agreements with potential customers announced by the Company following the March 31, 2025, commissioning of its Innovations Lab in Stillwater, Oklahoma. USAR’s Innovations Lab mimics the production capabilities of the USAR’s commercial manufacturing facility once commissioned in 2026. This capability now allows the Company to begin prototyping magnets and move through the qualification processes of potential customers, like Moog, as it seeks to scale up to its initial capacity next year.
“We continue our mission to bring the rare earth supply chain back to the broader technology market here in the U.S.,” said Joshua Ballard, CEO of USA Rare Earth. “We are excited to support Moog in bringing their magnets back home to America, a leader in so many critical industries in need of neo magnetic applications. We look forward to building a lasting partnership for many years to come.”
As part of the agreement, USA Rare Earth will design and test permanent Neodymium magnets for use in Moog’s CoreMotion™ technology, which is driving energy efficiency in data centers deployed globally.
“Moog’s Electric Motion Solutions business is proud to partner with USA Rare Earth as they build a secure domestic supply chain for rare earth magnets,” said Gwen Handy, Sector Supply Chain Manager at Moog. “With the rapid growth of AI, demand for high-performance data center cooling solutions is accelerating and reliable access to powerful, heat-resistant rare earth magnets is essential to helping our industry-leading customers deliver on their AI infrastructure commitments.”
For more information, please visit USARE.com and connect with us on LinkedIn and X.
About USA Rare Earth
USA Rare Earth is building a vertically integrated, domestic rare earth magnet production supply chain. USAR is currently constructing a 310k square foot rare earth sintered neo magnet manufacturing facility in Stillwater, Oklahoma. USAR also controls mining rights to the Round Top Mountain rare earth and critical minerals deposit in West Texas, which holds significant deposits of heavy rare earths, such as dysprosium and terbium, as well as gallium, beryllium, lithium and other critical tech minerals. USAR’s permanent neo magnets and rare earth minerals are required for a wide variety of products used in the defense, automotive, aviation, industrial, medical, and consumer electronics industries.
Forward-Looking Statements
Certain statements made in this press release are "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may generally be identified by the use of words such as "estimate," "projects," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "would," "should," "future," "propose," "potential," "target," "goal," "objective," "outlook" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.
These forward-looking statements include, but are not limited to, statements regarding the financial position, business strategy and the plans and objectives of management for future operations. These statements are based on various assumptions, whether or not identified in this communication, and on the current expectations of USA Rare Earth’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the control of the parties, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. The Company undertakes no obligation to update these statements for revisions or changes after the date of this presentation, except as required by law.
Investor Relations Contact:
Lionel McBee
VP, Investor Relations
IR@usare.com
Media Relations Contact:
Cricket PR
Brian Hyland
(201) 410-4563
USARE@cricketpr.com
FAQ
What is the purpose of the partnership between USA Rare Earth (USAR) and Moog?
When will USA Rare Earth (USAR) begin production of neo magnets for Moog?
What is the significance of USAR's Innovations Lab in Stillwater, Oklahoma?
How does this partnership relate to the AI industry?
What is Moog's CoreMotion™ technology?
