USA Rare Earth signs MOU with Enduro for neo magnet supply

Published 12/08/2025, 12:22
USA Rare Earth signs MOU with Enduro for neo magnet supply

STILLWATER, Okla. - USA Rare Earth, Inc. (NASDAQ:USAR), a $1.46 billion market cap company whose stock has gained over 9% in the past week, announced Tuesday it has signed a memorandum of understanding with Enduro Pipeline Services for the delivery of neo magnets, with production planned to begin in early 2026. According to InvestingPro analysis, the company currently trades above its Fair Value.

Enduro, a provider of pipeline cleaning and inline inspection tools, will use the high-powered neodymium magnets in its "intelligent pigs" that collect ferrous debris, detect defects, and track their location within pipelines.

"We’ve always believed that when American companies support each other, the entire industry gets stronger," said Dwane Laymon, CEO of Enduro Pipeline Services, in the press release.

This agreement is part of a series commissioning USAR’s Innovations Lab in Stillwater, Oklahoma, for prototyping and qualifying magnets for multiple industries. The company has previously announced MOUs with Moog, PolarStar, and StudBuddy across various sectors.

USAR’s manufacturing facility in Stillwater is designed to produce magnets of various sizes and shapes. The company is currently constructing a 310,000 square foot rare earth sintered neo magnet manufacturing facility at the location.

USA Rare Earth also controls mining rights to the Round Top Mountain rare earth and critical minerals deposit in West Texas, which contains deposits of heavy rare earths and other critical tech minerals used in defense, automotive, aviation, industrial, medical, and consumer electronics industries. The company maintains strong financial health with a current ratio of 3.52, indicating robust liquidity to fund its operations.

The announcement comes as part of USAR’s strategy to build a vertically integrated, domestic rare earth magnet production supply chain, according to information provided in the company’s statement. While the company reported profitability over the last twelve months, InvestingPro data reveals 11 additional key insights about USAR’s financial performance and outlook. Get the complete analysis and detailed Fair Value assessment in the Pro Research Report, available exclusively to subscribers.

In other recent news, USA Rare Earth Inc. reported its second-quarter 2025 earnings, which showed a larger-than-expected loss per share. The company posted an adjusted net loss of $0.08 per share, which was below the analysts’ forecasted loss of $0.06 per share. This marks a 33.33% miss from the expected figures. Despite this earnings miss, the company’s stock experienced a rebound in aftermarket trading. The stock rose 3.32% to $16.80, although it had closed down earlier. These developments are part of the latest financial updates concerning USA Rare Earth. The earnings report highlights the challenges the company is facing in meeting analysts’ expectations. Investors will be keen to see how the company addresses these issues in the coming quarters.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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