USA Rare Earth partners with Moog to prototype neo magnets for high-performance data center coolant distribution pumps, aiming for production in 2026.
Quiver AI Summary
USA Rare Earth, Inc. announced a memorandum of understanding with Moog Electric Motion Solutions to supply neo magnets, which USAR plans to produce starting in early 2026. Moog will prototype these magnets for use in its coolant distribution pumps for data centers, aligning with USAR’s goal to revitalize the rare earth supply chain in the U.S. This partnership follows the opening of USAR's Innovations Lab in Stillwater, Oklahoma, and is part of a broader strategy to establish a domestic supply chain for rare earth magnets, crucial for various industries, including tech and defense. Joshua Ballard, CEO of USA Rare Earth, emphasized the importance of this collaboration in supporting American industrial needs, while Moog highlighted the growing demand for reliable cooling solutions amid advances in AI technology.
Potential Positives
- USA Rare Earth signed a memorandum of understanding with Moog Electric Motion Solutions for the delivery of neo magnets, indicating a strategic collaboration with a reputable partner in the high-performance tech sector.
- The partnership aims to support Moog's efforts in enhancing energy efficiency in data centers, showcasing USA Rare Earth's relevance in the growing AI infrastructure market.
- The announcement follows the commissioning of USA Rare Earth's Innovations Lab, which accelerates prototyping and qualification processes for potential customers, enhancing their production capabilities.
- USA Rare Earth is establishing a vertically integrated domestic supply chain for rare earth magnets, aligning with national interests in securing critical materials for various industries.
Potential Negatives
- The announcement emphasizes forward-looking statements that come with inherent risks and uncertainties, suggesting potential instability in meeting projected goals.
- The memorandum of understanding indicates that the company is still in the prototyping phase, which may imply delays or challenges in actual production timelines set for 2026.
- The emphasis on the need for a secure domestic supply chain for rare earth magnets may signal vulnerabilities in the existing supply chain and potential reliance on a partnership to meet future demands.
FAQ
What is the purpose of the MOU between USA Rare Earth and Moog?
The MOU outlines the delivery of neo magnets for Moog's high-performance coolant distribution pumps.
When does USA Rare Earth plan to begin production of neo magnets?
USA Rare Earth plans to start production of neo magnets in early 2026.
What role does the Innovations Lab play for USA Rare Earth?
The Innovations Lab supports prototyping and qualification processes for potential customers, enhancing USA Rare Earth's manufacturing capabilities.
How will Moog utilize USA Rare Earth's neo magnets?
Moog will use the neo magnets in their CoreMotion™ technology for energy-efficient cooling solutions in data centers.
What industries benefit from USA Rare Earth’s products?
USA Rare Earth's rare earth minerals and magnets are vital for defense, automotive, aviation, medical, and consumer electronics industries.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$USAR Analyst Ratings
Wall Street analysts have issued reports on $USAR in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Roth Capital issued a "Buy" rating on 05/29/2025
To track analyst ratings and price targets for $USAR, check out Quiver Quantitative's $USAR forecast page.
Full Release
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.”
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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
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