USA Rare Earth Signs Deal to Supply Magnets for Data Centers

USA Rare Earth

Rare Earth Magnets Enter Data Center Cooling Supply Chains

USA Rare Earth (USAR) has signed an agreement with Moog Electric Motion Solutions to supply rare earth magnets for data center cooling systems. The deal focuses on Moog’s precision coolant pumps, which are critical to managing the rising energy intensity of large-scale data centers.

While financial terms and volumes remain undisclosed, the memorandum highlights the growing importance of heat-resistant neodymium magnets in meeting global digital infrastructure needs. According to Moog, advanced magnet technology is essential to sustain efficient cooling under heavy workloads.

Strategic Path Toward Domestic Magnet Production

USA Rare Earth plans to begin neodymium magnet production in 2026 with a target of 5,000 tonnes annually. The Stillwater, Oklahoma plant under development will be the first large-scale U.S. facility for sintered neodymium magnets, reducing reliance on overseas suppliers.

USAR already holds offtake agreements with both U.S. and South Korean companies, positioning itself as a strategic partner in global supply chains. The deal with Moog demonstrates early market traction for its planned capacity, especially in the fast-expanding data center sector.

The Metalnomist Commentary

USA Rare Earth’s agreement with Moog reflects a convergence of two critical industries: digital infrastructure and rare earth supply security. With data centers driving unprecedented energy demand, advanced magnets for cooling solutions will become a core enabler of operational stability. The success of USAR’s Oklahoma plant will not only support U.S. energy transition goals but also challenge China’s long-held dominance in rare earth magnet production.