USAR and PolarStar to Produce Neo Magnets in U.S. for Strategic Industries

USA Rare Earth

Rare Earth Partnership Targets Domestic Magnet Manufacturing and Supply Chain Security

USAR and PolarStar to produce neo magnets in U.S., marking a significant step toward restoring American capacity in rare earth magnet manufacturing. USA Rare Earth (USAR) has signed an agreement with Minnesota-based PolarStar Magnetics to produce neodymium-iron-boron (NdFeB) magnets for defense, EVs, robotics, wind energy, and other high-tech applications. The collaboration is focused on delivering DFARS-compliant magnets that meet stringent requirements for U.S. aerospace and military supply chains.

PolarStar will conduct early-stage magnet testing at USAR’s Innovation Lab in Stillwater, Oklahoma, where prototyping began in Q2 2025. The Stillwater plant, designed for 5,000 tonnes/year of sintered neo magnet production, is scheduled to begin commercial operations in the first half of 2026. This facility will become the first vertically integrated rare earth magnet plant of its kind in the U.S., sourcing materials domestically and supporting onshore value chains across electric mobility, appliances, and clean energy sectors.

Vertical Integration Supported by Round Top Rare Earth Deposit

USAR also holds mining rights to the Round Top Mountain deposit in West Texas, which contains 15 of the 17 rare earth elements alongside gallium, lithium, and other critical minerals. This upstream control gives the company a unique position to support mine-to-magnet production in the U.S., reducing dependency on Chinese supply chains. As USAR and PolarStar produce neo magnets in U.S., they strengthen national supply chain resilience and advance U.S. industrial policy objectives for critical materials independence.

The partnership is expected to evolve into a multi-year supply agreement, enhancing domestic rare earth value chains across sectors including defense, EVs, wind turbines, and advanced manufacturing.

The Metalnomist Commentary

The USAR–PolarStar deal reflects a broader U.S. strategy to onshore critical magnet supply chains amid rising geopolitical tensions. Vertical integration from Round Top to Stillwater offers a rare model of strategic autonomy in rare earths—a potential template for allied nations.