After the announcement of a significant strategic partnership, USA Rare Earth, Inc. (NASDAQ: USAR) experienced an 8.62% increase in share price to $13.03 in today’s trade. In a major step toward the commercialization of its neodymium (neo) magnets, which are anticipated to start production in early 2026, the business announced that it has inked a memorandum of understanding (MOU) with Moog Electric Motion Solutions.
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Prototyping Partnership with Moog
The MOU states that USA Rare Earth’s neo magnets will be prototyped by Moog, a top supplier of fluid control and precision motion systems. Data centers all around the world depend on Moog’s high-performance coolant distribution pumps, which are designed to employ these magnets. The partnership is a component of Moog’s larger plan to create a safe, domestic rare earth magnet supply chain.
Commercial Readiness Is Accelerated by Innovations Lab
This agreement follows the March 31, 2025, commissioning of USA Rare Earth’s Innovations Lab in Stillwater, Oklahoma. The facility replicates the production capacity of its upcoming commercial manufacturing plant and enables the company to begin prototyping and qualifying its products for potential partners. With Moog now onboard, USAR aims to transition toward scaled production capacity over the coming year.
Maintaining the Magnet Supply Chain in America
The collaboration demonstrates USA Rare Earth’s overarching goal of reviving the American rare earth supply chain, which is essential to several high-tech sectors. USAR is establishing itself as a pillar of American magnet supply resiliency by providing Moog with domestically made neo magnets for its CoreMotion technology, an energy-efficient system utilized in data center applications worldwide.
Growing Need in the Age of AI
Strong magnet technology is now more important than ever due to the growing demand for effective, high-performance cooling systems brought on by the quick development of AI infrastructure. In order to satisfy this need and provide a consistent supply of heat-resistant magnets necessary for next-generation AI and data center technologies, USA Rare Earth has partnered with Moog.
