USA Rare Earth Inc. (NASDAQ: USAR) announced a mutual sales and distribution agreement with Arnold Magnetic Technologies Corp., a subsidiary of Compass Diversified (NYSE: CODI). The partnership allows each company to sell and distribute the other's products.

Under the non-exclusive agreement, USA Rare Earth will offer Arnold's finished permanent magnets produced from samarium-cobalt and neodymium-iron-boron materials. Arnold will distribute USA Rare Earth's processed and refined neodymium-iron-boron feedstock and finished magnets. Each company remains responsible for product quality, warranties, and product-related liabilities for goods it manufactures.

The arrangement connects USA Rare Earth's domestic neodymium-iron-boron production with Arnold's finished magnet manufacturing capabilities. The companies said the partnership targets aerospace, defense, semiconductor, and advanced technology industries.

"This agreement strengthens our ability to deliver American-made magnet solutions at both scale and precision," said Barbara Humpton, Chief Executive Officer of USA Rare Earth. "We are producing magnets in Oklahoma and rapidly expanding that capability as part of our integrated global value chain."

Matt Blake, CEO of Arnold Magnetic Technologies, said the collaboration will "expand access to domestically produced magnet solutions" by combining USA Rare Earth's manufacturing platform with Arnold's precision manufacturing capabilities.

USA Rare Earth operates facilities including rare earth processing, metal-making through its Less Common Metals subsidiary, and magnet manufacturing in Stillwater, Oklahoma. Arnold Magnetic Technologies, based in Rochester, New York, operates manufacturing facilities in the United States, United Kingdom, Switzerland, Thailand, and China.