USA Rare Earth, Inc. (NASDAQ:USAR) shares climbed 20% after the company revealed it had signed a memorandum of understanding (MOU) with Enduro Pipeline Services to provide U.S.-manufactured neodymium magnets for pipeline cleaning equipment.
Per the agreement, USA Rare Earth will supply magnets for Enduro’s “intelligent pigs” — specialized tools that clean and inspect pipelines using high-powered magnets to capture ferrous debris, detect defects, and track position. USAR expects to start production of these magnets in early 2026.
The deal is the latest in a string of partnerships leveraging USAR’s Innovations Lab in Stillwater, Oklahoma, which serves as a hub for prototyping and qualifying magnets for use in a variety of industries. Past MOUs have included collaborations with Moog for AI/data center applications, PolarStar for aerospace and defense, and StudBuddy for residential construction.
“We are proud to partner with Enduro to provide them with American-made magnets that will maintain the speed and quality for which their pigs are known,” said Joshua Ballard, CEO of USA Rare Earth. “Our manufacturing plant in Stillwater stands ready to serve any industry, with the capability to create high-powered magnets of every size and shape.”
Enduro CEO Dwane Laymon stressed the importance of local manufacturing, noting that it “helps keep jobs in our state, strengthens our economy, and reinforces our ability to deliver dependable tools to pipeline operators.”
The Innovations Lab replicates the production capabilities planned for USAR’s commercial manufacturing facility, which is expected to come online in 2026.
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