Mentioned:
USAR -17.31% MP -9.59%
Rare earth magnets are in enormous demand in the United States. And it’s continuing to make waves in the public markets.
What’s happening:
- USA Rare Earth (NASDAQ: USAR) has entered into a new memorandum of understanding with Enduro Pipeline Services to supply them with domestic rare earth magnets
Why it matters:
- Domestic magnet production continues to be a major theme both in geopolitics and the public markets, with Apple (NASDAQ: AAPL) just recently making major waves with a half a billion dollar purchase agreement for rare earth magnets with MP Materials (NYSE: MP)
Going deeper:
- Enduro Pipeline Services is a pipeline inspection company that leverages neodymium magnets for inspecting the infrastructure of oil and gas operations and collecting debris from inside pipelines such as rust and welding fragments
- USA Rare Earth has now signed memorandums of understanding with nearly a dozen different companies which represents nearly 300 tonnes of potential annual rare earth magnet production
The fine print:
- USA Rare Earth’s magnet production facility located in Stillwater, Oklahoma is still not operational and is not expected to be manufacturing rare earth magnets this year
