USA Rare Earth, Inc. (Nasdaq: USAR) announced a mutual sales and distribution agreement with Arnold Magnetic Technologies Corp. a subsidiary of Compass Diversified (NYSE: CODI), and a leading global manufacturer of high-performance magnets and precision components. The agreement strengthens the domestic supply chain for mission-critical applications by expanding availability of U.S.-manufactured rare earth magnets.

Under the non-exclusive partnership, each company is authorized to sell and distribute the other’s products. USA Rare Earth will offer Arnold’s finished permanent magnets produced from samarium-cobalt (SmCo) and neodymium-iron-boron (NdFeB), and Arnold will offer USA Rare Earth’s processed and refined NdFeB feedstock and finished magnets. Each company will remain responsible for product quality , warranties, and any product-related liabilities for the goods it manufactures.

The agreement strengthens a U.S.-aligned supply chain for the aerospace, defense, semiconductor, and advanced technology industries by connecting processed materials with domestic capabilities to generate finished, compliance-ready magnet solutions. Bringing together USA Rare Earth’s domestic NdFeB production and Arnold’s finished magnet and engineering capabilities will enable customers to access a broader portfolio of high-performance magnet solutions.

Rare earth permanent magnets, including NdFeB and SmCo, are essential components of semiconductors and the technology needed to manufacture them, radar systems, missile and fighter jet guidance systems, and lightweight precision aerospace components, among other applications. However, supply chains for these materials remain highly concentrated outside the United States. The USAR-Arnold collaboration supports the development of a mor e resilient, domestic supply chain aligned with U.S. policy priorities to reduce reliance on foreign sources of rare earths and strengthen national security.

“This agreement strengthens our ability to deliver American-made magnet solutions at both scale and precision,” said Barbara Humpton, Chief Executive Officer of USA Rare Earth. “We are producing magnets in Oklahoma and rapidly expanding that capability as part of our integrated global value chain. Our work with Arnold strengthens our capabilities by allowing us to meet high-volume demand, while also supporting customers that require tailored, mission-specific solutions.”

“Arnold is pleased to collaborate with USA Rare Earth to expand access to domestically produced magnet solutions,” said Matt Blake, CEO of Arnold Magnetic Technologies. “Combining USA Rare Earth’s magnet manufacturing platform with Arnold’s precision manufacturing expertise positions both companies well to serve critical market s that demand performance, reliability, and compliance.”

The agreement further supports USA Rare Earth’s integrated mine-to-magnet strategy, which includes one of the United States’ richest known deposits of heavy rare earth elements (HREEs) at Round Top, rare earth processing and separation, metal-making through its Less Common Metals subsidiary, and magnet manufacturing in the United States.

About USA Rare Earth

USA Rare Earth, Inc. 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. 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.

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 l ocated 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.