USA Rare Earth Subsidiary LCM Partners with Arnold Magnetic Technologies to Secure Rare Earth Metals Supply
Rhea-AI Summary
USA Rare Earth (Nasdaq: USAR) announced that subsidiary Less Common Metals (LCM) signed a supply agreement with Solvay and Arnold Magnetic Technologies (a Compass Diversified subsidiary) to provide a reliable, ex-China source of high-quality rare-earth materials for advanced permanent magnet production.
The deal aims to strengthen U.S. and European rare-earth supply chains and support sectors including aerospace, defense, automotive, and energy. USA Rare Earth completed its acquisition of LCM in November 2025. LCM will provide alloy feedstock for USAR’s Stillwater, Oklahoma magnet facility, which the company says remains on track for first-quarter 2026 commissioning.
Positive
- Signed supply agreement securing an ex-China rare-earth source
- LCM acquisition completed in November 2025
- Provides alloy feedstock for Stillwater magnet facility
- Magnet facility on track for first-quarter 2026 commissioning
- Partnership supports aerospace, defense, automotive, and energy supply chains
Negative
- None.
News Market Reaction
On the day this news was published, USAR gained 24.95%, reflecting a significant positive market reaction. Argus tracked a peak move of +21.3% during that session. Our momentum scanner triggered 180 alerts that day, indicating very high trading interest and price volatility. This price movement added approximately $470M to the company's valuation, bringing the market cap to $2.35B at that time. Trading volume was elevated at 2.1x the daily average, suggesting notable buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
USAR was down 4.4% while key peers were mixed: IPX +2.22%, VZLA +0.56%, ALM -0.88%, GSM +3.06%, CMP +3.63%. Momentum scans flagged only NEXA at -10.87%, suggesting today’s setup was more stock-specific than sector-wide.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 10 | Production timeline | Positive | -4.4% | Accelerated Round Top commercial production timeline and DFS schedule. |
| Dec 04 | Partnership deal | Positive | +24.9% | LCM supply deal with Solvay and Arnold for ex‑China rare earth materials. |
| Nov 26 | Index inclusion | Positive | +2.7% | Preliminary addition to the <b>Russell 2000®</b> and related indexes. |
| Nov 20 | Partnership deal | Positive | -14.7% | LCM–Solvay agreement to supply Samarium materials to Permag. |
| Nov 18 | Acquisition close | Positive | +5.6% | Closing of LCM acquisition, adding rare earth metal and alloy capacity. |
Recent USAR news has been mostly positive with 3 aligned and 2 divergent price reactions, showing both strong upside days and occasional selloffs on good news.
Over the last month, USAR has reported multiple strategic milestones. It closed the LCM acquisition on Nov 18, followed by a supply partnership for Permag on Nov 20 and preliminary inclusion in the Russell 2000® on Nov 26. The company then announced an LCM–Solvay–Arnold supply agreement on Dec 4 and accelerated Round Top production to late 2028 on Dec 10. Together, these updates reinforce a mine‑to‑magnet build‑out and expanding commercial relationships.
Market Pulse Summary
The stock surged +24.9% in the session following this news. A strong positive reaction aligns with how USAR has occasionally traded on strategic news, such as the prior partnership move of 24.95%. Investors previously rewarded supply‑chain milestones and index developments, but past events also showed sharp reversals on good news. Large prior PIPE financings and going‑concern disclosures from recent filings remain key risks that could temper follow‑through, as capital needs and potential future financings may influence how durable any outsized move proves.
Key Terms
rare-earth materials technical
permanent magnets technical
AI-generated analysis. Not financial advice.
STILLWATER, Okla., Dec. 04, 2025 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) (USAR or the Company) today announced that its subsidiary, Less Common Metals (LCM), signed a supply agreement with Solvay and Arnold Magnetic Technologies Corporation (Arnold), a subsidiary of Compass Diversified (NYSE: CODI).
Leveraging LCM’s metal and alloy making expertise, the agreement will ensure a reliable, ex-China source of high-quality rare-earth materials for Arnold’s production of advanced permanent magnets. This partnership marks yet another step forward in strengthening the U.S. and European rare earth supply chains and ensuring long-term stability for key sectors including aerospace, defense, automotive, and energy.
“This collaboration exemplifies the type of industrial partnerships that are rebuilding strength and resilience across the rare-earth ecosystem outside of China,” said Barbara Humpton, Chief Executive Officer of USA Rare Earth. “LCM’s role demonstrates the strategic importance of secure, reliable sourcing, and how collaboration between trusted partners can guarantee sustainable access to critical rare-earth materials for global magnet manufacturers.”
USA Rare Earth completed its acquisition of LCM in November 2025. LCM continues to serve its global customer base while providing alloy feedstock for USAR’s Stillwater, Oklahoma, magnet manufacturing facility, which remains on track for first-quarter 2026 commissioning.
About USA Rare Earth
USA Rare Earth, Inc. (Nasdaq: USAR) is developing a rare earth sintered neo magnet (NdFeB or neo) manufacturing plant in Stillwater, Oklahoma, and intends to establish domestic rare earth and critical minerals supply, extraction, and processing capabilities to both supply its magnet manufacturing plant and market surplus materials to third parties. Rare earth magnets are critical to various business sectors and industries, including the defense, automotive, aviation, industrial, AI Robotics, medical, and consumer electronics industries, among others. USAR is planning to take a broad approach to the industries it serves with the intention of providing high quality neo magnets to a variety of industries and customers. USAR's focus on developing domestic rare earth production aligns with national priorities, offering the potential of a sustainable and secure domestic supply of materials critical to key industries.
Investor Relations Contact:
Lionel McBee
VP, Investor Relations
IR@usare.com
Media Relations Contacts:
Tucker Elcock
Teneo
Tucker.Elcock@teneo.com
FAQ
What did USA Rare Earth (USAR) announce on December 4, 2025?
How does the USAR–LCM agreement affect magnet production at Stillwater?
When did USA Rare Earth complete the acquisition of LCM?
Which industries does the USAR supply deal aim to support?
Who is Arnold Magnetic Technologies in the USAR announcement?
Does the announcement confirm the Stillwater magnet facility start date?
