USA Rare Earth and The StudBuddy® Sign Memorandum of Understanding for Delivery of U.S.-Made Neo Magnets
STILLWATER, Okla., April 22, 2025 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (NASDAQ:USAR) (USAR or the Company), which is building out a domestic rare earth element magnet production supply chain that includes the mining and processing of heavy rare earths and other critical minerals, today announced it has signed a memorandum of understanding (MOU) with The StudBuddy®, maker of the world's simplest magnetic stud finder tool.
The MOU reflects USAR's mission to establish and secure a domestic rare earth magnet supply chain for critical U.S. industries and everyday consumer products. This partnership, which brings together two organizations committed to domestic development and production, represents a significant milestone in the Company's journey to bring the rare earth magnet industry to the U.S. following the March 31 commissioning of its Innovations Lab in Stillwater, Oklahoma.
Discussions will now progress toward a detailed multi-year supply agreement in which USAR will deliver approximately 20 metric tons of finished sintered neodymium magnets to StudBuddy annually.
"USA Rare Earth intends to bring high-powered magnet production back the to the U.S., and we are thrilled that our first customer announcement is with a quintessential American success story like The StudBuddy," said Joshua Ballard, CEO of USA Rare Earth. "Weston Bernsen and his team, who share our commitment to U.S. manufacturing, are exactly the kind of customer we're proud to partner with. I'm excited for what lies ahead."
The StudBuddy was invented by Collin Bernsen, a framer, carpenter, builder, designer and general contractor seeking a simpler and more accurate way of locating framing studs behind drywall. Collin discovered the ease of locating nails and screws behind drywall using neodymium magnets, and therefore, stud location. This led to the patent and design of a simple device that would locate studs and hang on the wall for visual reference, which ultimately created The StudBuddy.
"We at The StudBuddy have been committed to supporting domestic manufacturing and suppliers from the very beginning," said Weston Bernsen, Vice-President at The StudBuddy. "We have done all we can, despite increased costs and supply challenges, to source components from and produce our products in the United States. Continuing our pursuit of a fully domestic supply chain, we are proud to announce our partnership with USA Rare Earth, which will soon supply the high-powered permanent rare earth magnets we use in every one of our products. Over the coming years, not only will these magnets be made in the USA, but the raw material mining and oxide production will be fully vertically integrated domestically under the USA Rare Earth umbrella. What was once a dream is quickly becoming a reality, and we are very optimistic for what the future holds."
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About USA Rare Earth
USA Rare Earth is building a vertically integrated, domestic rare earth magnet production supply chain. USAR is currently constructing a 310k square foot rare earth sintered neo magnet manufacturing facility in Stillwater, Oklahoma. USAR also controls mining rights to the Round Top Mountain rare earth and critical minerals deposit in West Texas, which holds significant deposits of heavy rare earths, such as dysprosium and terbium, as well as gallium, beryllium, lithium and other critical tech minerals. USAR's permanent neo magnets and rare earth minerals are required for a wide variety of products used in the defense, automotive, aviation, industrial, medical, and consumer electronics industries.
Forward-Looking Statements
Certain statements made in this press release are "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may generally be identified by the use of words such as "estimate," "projects," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "would," "should," "future," "propose," "potential," "target," "goal," "objective," "outlook" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.
These forward-looking statements include, but are not limited to, statements regarding the financial position, business strategy and the plans and objectives of management for future operations. These statements are based on various assumptions, whether or not identified in this communication, and on the current expectations of USA Rare Earth's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the control of the parties, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. The Company undertakes no obligation to update these statements for revisions or changes after the date of this presentation, except as required by law.
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