USA Rare Earth, Inc. (NASDAQ:USAR) shares are trading higher on Tuesday after the company announced it will supply American-made neodymium magnets to Enduro Pipeline Services for use in its pipeline inspection tools starting in early 2026.
What To Know: The agreement, formalized through a memorandum of understanding, will see USA Rare Earth's magnets incorporated into Enduro's "smart pigs," advanced devices that use high-powered magnets to collect ferrous debris, detect defects and track locations within pipelines.
Enduro CEO Dwane Laymon said, "Sourcing rare earth magnets domestically — from a fellow Oklahoma manufacturer — does more than improve our supply chain. It helps keep jobs in our state, strengthens our economy, and reinforces our ability to deliver dependable tools to pipeline operators."
The deal is part of USA Rare Earth's broader strategy to expand its Innovations Lab in Stillwater, Oklahoma, where magnets are prototyped and qualified for use in multiple industries. In recent months, the company has signed additional MOUs with Moog for AI and data center applications, PolarStar for aerospace and defense and StudBuddy for residential construction. These initiatives are designed to mirror the production capabilities of USA Rare Earth's upcoming commercial manufacturing facility, set to begin operations in 2026.
USA Rare Earth CEO Joshua Ballard emphasized the strategic importance of the partnership, stating, "Our manufacturing plant in Stillwater stands ready to serve any industry, with the capability to create high-powered magnets of every size and shape." The company's focus on domestic production aligns with efforts to strengthen U.S. supply chains for critical materials.
USAR Price Action: USA Rare Earth shares were up 20.60% at $18.62 at publication on Tuesday, according to Benzinga pro.
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