Arnold and USA Rare Earth link up on domestic magnet supply

Arnold Magnetic Technologies and USA Rare Earth have signed a mutual sales and distribution agreement to strengthen the domestic supply chain for rare earth permanent magnets in the United States. Under the deal, each company is authorised to sell and distribute the other’s products on a non-exclusive basis.

Arnold will offer USA Rare Earth’s processed and refined neodymium-iron-boron (NdFeB) materials and finished magnets, while USA Rare Earth will distribute Arnold’s finished permanent magnets produced from samarium-cobalt (SmCo) and NdFeB materials. Each party retains responsibility for the quality and warranties of its own manufactured goods.

Rare earth magnets are critical components in electric vehicles (EVs), wind turbines, advanced industrial equipment and defence systems. Global supply chains for these materials remain heavily concentrated outside the United States, and recent export controls on rare earth and magnet materials have underlined the vulnerability of domestic manufacturers to supply disruptions and price volatility.

The partnership pairs Arnold’s established magnet manufacturing capabilities with USA Rare Earth’s US-based NdFeB processing and refining operations, covering the supply chain from refined material through to finished magnet products. The companies said the agreement supports ongoing US policy efforts to reduce dependence on foreign suppliers of critical minerals.

Arnold is a subsidiary of Compass Diversified (NYSE: CODI). USA Rare Earth is listed on the Nasdaq under the ticker USAR.

Source: Arnold Magnetic Technologies