• The agreement aims to strengthen an American-European supply chain deemed crucial for aerospace, defense, automotive, and energy industries.
• USAR's recently completed acquisition of LCM gives it access to high-grade NdPr alloys and strip cast essential for magnet production.
• USAR is progressing toward the first quarter 2026 commissioning of its Stillwater magnet manufacturing facility in Oklahoma.

USA Rare Earth Inc. (USAR) shares rose 16% on Thursday after its newly acquired subsidiary, Less Common Metals (LCM), secured a rare-earth supply agreement with Solvay and Arnold Magnetic Technologies, a subsidiary of Compass Diversified Holdings (CODI).

CODI stock was up 3%.

Rare Earth Supply Agreement

The agreement will see the U.K.-based LCM supply Arnold with ex-China rare-earth metals and alloys for advanced permanent magnet production. The agreement aims to strengthen an American-European supply chain, thereby ensuring stability for key sectors, including aerospace, defense, automotive, and energy.

“This collaboration exemplifies the type of industrial partnerships that are rebuilding strength and resilience across the rare-earth ecosystem outside of China. LCM's role demonstrates the strategic importance of secure, reliable sourcing and how collaboration between trusted partners can guarantee sustainable access to critical rare-earth materials for global magnet manufacturers,” said Barbara Humpton, Chief Executive Officer of USA Rare Earth.

LCM Acquisition

USAR completed its acquisition of LCM on November 18, reinforcing a critical part of its rare-earth supply chain. The deal, first announced in September, included $100 million in cash and 6.74 million shares of USAR's common stock.

The acquisition provides USAR with access to high-grade neodymium and praseodymium (NdPr) alloys and strip cast essential for magnet production. Meanwhile, the company is progressing toward commissioning its Stillwater magnet manufacturing facility in Oklahoma in the first quarter of 2026, which is poised to become one of the first large-scale U.S. producers of Neodymium Iron Boron magnets.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits flipped to 'bullish' from 'bearish' a day earlier, amid 'high' message volumes. Year-to-date, the stock has gained around 10%.

Rare earth has been a hot topic this year after China restricted supply in response to export tariffs imposed by Donald Trump. With China controlling roughly 70% of global mining and nearly 90% of processing, it holds significant market power, leaving the U.S. and its allies exposed to potential supply risks.

This has led the White House to intensify its efforts to expand domestic production of critical minerals, including by acquiring stakes in multiple critical-mineral miners and rare-earth magnet producers.

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