What are DFARS rare earth magnets?

DFARS rare earth magnets are permanent magnets produced in compliance with the Defense Federal Acquisition Regulation Supplement, which governs defense procurement in the United States. They must originate from approved Western sources rather than from countries such as China.

Who are the partners involved?

The four organisations involved are Arnold Magnetic Technologies, Less Common Metals (LCM), Solvay, and USA Rare Earth, Inc. (Nasdaq: USAR). Arnold is a subsidiary of Compass Diversified (NYSE: CODI).

What magnet materials do these agreements cover?

The agreements cover both samarium-cobalt (SmCo) and neodymium-iron-boron (NdFeB) permanent magnet grades, as well as processed and refined NdFeB feedstock materials.

Why does this matter for fusion energy developers?

Rare earth permanent magnets appear throughout the systems that surround a fusion plasma, from diagnostic sensors and drive motors to power conversion assemblies and beam steering components. NdFeB magnets are specified across motors, generators, and power conversion equipment that surround fusion systems, while SmCo handles high-temperature sensor and drive applications closer to the plasma boundary. These agreements expand access to traceable Western supply of both grades.

Which industries benefit from these agreements?

Arnold frames the combined result as a U.S. and U.K.-aligned mine-to-magnet framework for mission-critical applications across energy, medical, scientific, and defence sectors.

What is USA Rare Earth's mine-to-magnet strategy and how does Arnold fit into it?

USA Rare Earth's integrated mine-to-magnet strategy spans its Round Top deposit, described by the company as one of the United States' richest known deposits of heavy rare earth elements, through to metal-making via its Less Common Metals subsidiary and magnet manufacturing at its Stillwater, Oklahoma facility. The Arnold distribution agreement extends that strategy by connecting USAR's domestic NdFeB production with Arnold's precision magnet manufacturing and established customer base.

What does the LCM and Solvay agreement provide at the materials level?

The agreement secures Arnold's access to Western-origin rare earth oxides and alloys including samarium oxide, which Arnold states is vital for producing samarium-cobalt magnets in aerospace and defence systems. Solvay commissioned a neodymium-praseodymium production line at its La Rochelle, France site in April 2025 and has since launched commercial production of dysprosium, terbium, and samarium from the same facility.

Arnold Magnetic Technologies strengthens Western rare earth magnet supply chain

Q: What has Arnold Magnetic Technologies announced?

Arnold Magnetic Technologies has completed two agreements that together form a Western rare earth magnet supply chain. The first, signed with Less Common Metals and Solvay late last year, secures Western-origin rare earth oxides and alloys including samarium oxide. The second, announced in March 2026 with USA Rare Earth, creates a mutual non-exclusive sales and distribution partnership covering both samarium-cobalt and neodymium-iron-boron magnet grades.

Q: What is the structure of the Arnold and USA Rare Earth distribution agreement?

The agreement is mutual and non-exclusive. Arnold will offer USA Rare Earth's processed and refined NdFeB feedstock and finished magnets, while USA Rare Earth will offer Arnold's finished SmCo and NdFeB permanent magnets. Each party retains full responsibility for the quality, warranties, and liabilities of the goods it manufactures, and neither company shares in the proceeds from the other's resale.

Category: Cryogenics, Diagnostics, Injectors, Magnets, Superconductors

May 11, 2026

Finished rare earth permanent magnet assemblies produced by Arnold Magnetic Technologies under its Western-produced DFARS rare earth magnet supply chain, developed in partnership with USA Rare Earth, Less Common Metals, and Solvay.

Arnold Magnetic Technologies has structured partnerships with USA Rare Earth, Less Common Metals, and Solvay to deliver DFARS rare earth magnets from a Western supply chain.

(Image courtesy of Arnold Magnetic Technology)

Rare earth permanent magnets appear throughout the systems that surround a fusion plasma, from diagnostic sensors and drive motors to power conversion assemblies and beam steering components. Until recently, the supply chain behind those magnets was heavily concentrated in China. Arnold Magnetic Technologies has spent the past six months changing that, completing two agreements that together span Western rare earth magnet supply from raw oxide through to finished, compliance-ready product. For fusion developers moving toward industrial scaling and government procurement, the timing is significant.

How Arnold secured its Western rare earth feedstock

The supply chain work started at the feedstock level. Arnold, a subsidiary of Compass Diversified (NYSE: CODI), signed a supply agreement with Less Common Metals (LCM) and Solvay late last year to secure a reliable source of Western-origin rare-earth oxides and alloys, including samarium oxide, which Arnold states is vital for producing samarium-cobalt magnets in aerospace and defence systems. SmCo’s high-temperature stability and resistance to demagnetisation make it the specification of choice for sensors and drive systems where magnetic output must remain predictable under extreme thermal conditions – properties that matter directly to fusion applications. According to Arnold’s announcement, Solvay commissioned a neodymium-praseodymium production line at its La Rochelle, France site in April 2025 and has since launched commercial production of dysprosium, terbium, and samarium from the same facility, underpinning the Western material supply Arnold’s customers now depend on.

Arnold and USA Rare Earth expand Western rare earth magnet distribution

With feedstock secured, Arnold addressed the distribution side. In March, Arnold and USA Rare Earth, Inc. (Nasdaq: USAR) announced a mutual, non-exclusive sales and distribution agreement connecting Arnold’s precision magnet manufacturing with USAR’s domestic neodymium-iron-boron processing and refining capabilities. Arnold will offer USAR’s processed and refined NdFeB feedstock and finished magnets, while USAR will offer Arnold’s finished SmCo and NdFeB permanent magnets. Each party retains full responsibility for the quality, warranties, and liabilities of the goods it manufactures, and neither shares in the proceeds from the other’s resale. USAR CEO Barbara Humpton said the partnership allows USAR to meet high-volume demand while supporting customers that require tailored, mission-specific solutions. Arnold CEO Matt Blake noted that combining both companies’ expertise positions them to serve critical markets that demand performance, reliability, and compliance.

What this means for fusion procurement

Arnold frames the combined result as a U.S. and U.K.-aligned mine-to-magnet framework covering both SmCo and NdFeB materials for mission-critical applications across energy, medical, scientific, and defence sectors. NdFeB magnets are specified across the motors, generators, and power conversion equipment that surround fusion systems, while SmCo handles the high-temperature sensor and drive applications closer to the plasma boundary. Based in Rochester, NY, with more than 130 years of operating history and facilities in the United States, the United Kingdom, Switzerland, Thailand, and China, Arnold serves more than 2,000 clients worldwide. For fusion programmes moving from demonstration to deployment, compliant and traceable magnet supply is becoming a procurement requirement, not just a sourcing preference.

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Arnold Magnetic Technologies strengthens Western rare earth magnet supply chain

How Arnold secured its Western rare earth feedstock

Arnold and USA Rare Earth expand Western rare earth magnet distribution

What this means for fusion procurement

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