The companies aim to form a domestic supply chain of rare earth magnets, a field currently dominated by China.
USA Rare Earth and magnet maker PolarStar Magnetics have signed a Memorandum of Understanding (MoU) to advance the domestic production of neodymium magnets, or NdFeBs. Under the agreement, both companies aim to deliver magnets manufactured entirely in the United States to strategic sectors, including aerospace and defense. Currently, over 90% of the global rare earth magnet production capacity is located in China, making the U.S. and the rest of the world highly dependent on imports.
As part of the collaboration, PolarStar will participate in early-stage testing at USA Rare Earth’s magnet facility in Stillwater, Oklahoma. In January, the company produced the first batch of sintered magnets at the site and is now expanding operations toward commercial-scale output (we reported).
USA Rare Earth is one of the few U.S. businesses engaged in the entire rare earth value chain, from mining to magnet production, as it also holds mining rights to the Round Top Mountain deposit in Texas. So far, the company has only produced samples of rare earths, however.
The only commercially operating rare earth mine in the U.S. is the Mountain Pass mine in California, operated by MP Materials. The Las Vegas-based company is also aiming to enter the magnet market, having recently begun producing rare earth metals at its new magnet facility in Fort Worth, Texas.
Photo: iStock/xiao zhou