USA Rare Earth and Moog Sign Memorandum of Understanding for Delivery of U.S.-Made Neo Magnets for Data Center Cooling Solutions

Rhea-AI Summary

USA Rare Earth (NASDAQ: USAR) has signed a memorandum of understanding with Moog Electric Motion Solutions to supply neo magnets for data center cooling solutions. USAR will begin prototyping magnets for use in Moog's CoreMotion™ liquid coolant distribution pumps, with production scheduled to start in early 2026. The agreement follows USAR's March 2025 commissioning of its Innovations Lab in Stillwater, Oklahoma, which replicates the capabilities of their upcoming commercial manufacturing facility. The partnership aims to strengthen the domestic rare earth supply chain and support the growing demand for high-performance cooling solutions in AI data centers. The collaboration will focus on designing and testing permanent Neodymium magnets specifically for Moog's data center cooling technology.

Positive

• 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

Negative

• 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

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?

USAR will supply neo magnets for Moog's CoreMotion™ liquid coolant distribution pumps used in data center cooling solutions, with the goal of establishing a domestic rare earth magnet supply chain.

When will USA Rare Earth (USAR) begin production of neo magnets for Moog?

USAR plans to begin production in early 2026 at their commercial manufacturing facility.

What is the significance of USAR's Innovations Lab in Stillwater, Oklahoma?

The Innovations Lab, commissioned in March 2025, mimics the production capabilities of USAR's future commercial facility and allows for prototyping and customer qualification processes.

How does this partnership relate to the AI industry?

The partnership addresses the growing demand for high-performance data center cooling solutions needed for AI infrastructure, which requires reliable access to powerful, heat-resistant rare earth magnets.

What is Moog's CoreMotion™ technology?

CoreMotion™ is Moog's technology for liquid coolant distribution pumps that drives energy efficiency in data centers deployed globally.