Partnership strengthens U.S. rare earth magnet supply chain and supports domestic manufacturing resilience
Arnold Magnetic Technologies Corporation (“Arnold”), a subsidiary of Compass Diversified (NYSE: CODI), and a leading global manufacturer of high-performance magnets and precision components, and USA Rare Earth, Inc. (Nasdaq: USAR) announced a mutual sales and distribution agreement that strengthens the domestic supply chain for high-performance rare earth permanent magnets in the United States.
Partnership announcement
Under the agreement, each company is authorized to sell and distribute the other’s products while remaining independent contractors in a non-exclusive partnership. Arnold will offer USAR’s processed and refined neodymium-iron-boron (NdFeB) materials and finished magnets, while USAR will offer Arnold’s finished permanent magnets produced from samarium-cobalt (SmCo) and neodymium-iron-boron (NdFeB) materials. Each party remains responsible for product quality, warranties, and any product-related liabilities for the goods it manufactures, and neither company will share in the proceeds from the other’s resale of products to end users.
Strategic importance for U.S. supply
Rare earth magnets such as SmCo and NdFeB are critical components in electric vehicles, wind turbines, advanced industrial equipment, and defense systems. However, global supply chains for these materials remain highly concentrated outside the United States. Recent export controls and licensing requirements affecting rare earths and magnet materials have highlighted the vulnerability of U.S. manufacturers to supply disruptions and price volatility, especially for magnet materials used in high-performance and defense-related applications.
By pairing Arnold’s established magnet manufacturing capabilities with USAR’s U.S.-based NdFeB processing and refining, the partnership advances a more resilient American supply chain, from refined material through finished magnet products. This collaboration directly supports ongoing U.S. policy initiatives and trade measures aimed at strengthening domestic production of rare earth magnets, reducing dependence on foreign suppliers, and mitigating national security risks linked to critical mineral imports.
