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STILLWATER, Okla. - USA Rare Earth, Inc. (NASDAQ:USAR), which has seen its stock surge over 26% in the past week and maintains a market capitalization of $1.32 billion, announced Tuesday it has signed a joint development agreement with ePropelled, Inc. to develop a strategic supply relationship for sintered neo magnets used in motors for uncrewed vehicles. According to InvestingPro analysis, the company currently appears overvalued based on its Fair Value assessment.
Under the agreement, USAR will begin prototyping neo magnets for ePropelled’s motors, controllers, generators, and power management systems. These components are utilized in various uncrewed air, land, and sea vehicles, ranging from large-payload aerial drones to surveillance equipment. The company’s strong liquidity position, with a current ratio of 3.52, suggests it has ample resources to support this development initiative.
"This agreement is another milestone in our efforts to fill our 2026 pipeline and work through the development and qualification process with customers across industries as we complete the commissioning of our Stillwater manufacturing facility," said Joshua Ballard, CEO of USA Rare Earth, in the press release. InvestingPro data shows the company maintains a GOOD financial health score, with analysts unanimously rating it as a Strong Buy. Investors can access detailed analysis and 10 additional ProTips through InvestingPro’s comprehensive research reports.
The partnership aims to provide domestically manufactured high-performance magnets for ePropelled’s electric propulsion solutions. ePropelled serves customers in aerospace, defense, industrial automation, and maritime industries, with its technology used in surveillance drones, robotic ground vehicles, and autonomous marine vessels.
USA Rare Earth is currently constructing a 310,000 square foot rare earth sintered neo magnet manufacturing facility in Stillwater, Oklahoma. The company also controls mining rights to the Round Top Mountain rare earth and critical minerals deposit in West Texas.
ePropelled, headquartered in Laconia, New Hampshire, holds 49 patents and operates with additional facilities in the UK and India. The company’s products are designed for applications requiring compliance with international defense standards, including the National Defense Authorization Act (NDAA).
In other recent news, USA Rare Earth, Inc. announced the retirement of its Chief Operating Officer, Steve Ridge, who will transition to a part-time consulting role for three months to assist with his duties. Shareholders of USA Rare Earth approved the issuance of up to 10.7 million shares of common stock in connection with a private placement transaction. This approval was part of a special meeting of shareholders, aligning with Nasdaq Listing Rule 5635(d). The company also signed a memorandum of understanding with Moog Electric Motion Solutions to supply neodymium magnets for data center cooling pumps, with production set to begin in 2026. Canaccord Genuity initiated coverage on USA Rare Earth with a Buy rating, citing the company’s growth potential beyond 2035. Additionally, USA Rare Earth appointed David Bushi as the new Senior Vice President of Manufacturing, bringing over 25 years of experience to oversee operations at their neodymium magnet production facility.
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