USA Rare Earth and ePropelled partner to develop sintered neo magnets for advanced uncrewed vehicle systems.
Quiver AI Summary
USA Rare Earth, Inc. has announced a joint development agreement with ePropelled, Inc. to create a supply relationship for sintered neo magnets, which will be used in ePropelled's advanced motors for uncrewed air, land, and sea vehicles. This partnership will involve prototyping magnets for various high-performance applications, including motors, controllers, and power systems. Both companies are focused on enhancing supply chains and meeting the growing demands of customers in the aerospace, defense, and maritime sectors. USA Rare Earth is building a new manufacturing facility in Stillwater, Oklahoma, and holds significant mining rights for rare earth minerals essential for multiple industries. ePropelled, a leader in propulsion systems, is committed to sustainable technology and has a strong patent portfolio.
Potential Positives
- The signing of a joint development agreement with ePropelled, a leader in magnetics engineering, enhances USA Rare Earth's strategic partnerships and potential revenue streams.
- USA Rare Earth will begin prototyping neo magnets specifically for ePropelled’s advanced systems, showcasing its innovative capabilities in high-performance manufacturing.
- This partnership aligns with USA Rare Earth's commitment to building a domestic supply chain for rare earth magnets, further emphasizing its role in the defense and technology sectors.
Potential Negatives
- The press release highlights a reliance on a partner (ePropelled) for critical supply chain needs, which may signal potential vulnerabilities in USAR's own production capabilities.
- The mention of a 2026 pipeline may indicate that USAR is still in early stages of development and not yet securing significant revenue, potentially raising concerns about immediate financial performance.
- By focusing on a specific partnership, the press release may overshadow the company's broader market performance and challenges, leading to questions about its overall business strategy and market presence.
FAQ
What is the purpose of the joint development agreement between USA Rare Earth and ePropelled?
The agreement aims to establish a supply relationship for USA Rare Earth’s sintered neo magnets for ePropelled’s advanced motors.
How will USA Rare Earth support ePropelled with their products?
USA Rare Earth will prototype neo magnets for use in ePropelled’s high-performance motors and power management systems.
What industries does ePropelled serve with its technologies?
ePropelled serves aerospace, defense, industrial automation, and maritime sectors with its uncrewed vehicle systems.
What are the main benefits of partnering with USA Rare Earth?
The partnership enhances ePropelled's supply chain and ensures access to essential rare earth materials for their solutions.
Where is USA Rare Earth’s magnet manufacturing facility located?
The manufacturing facility is being constructed in Stillwater, Oklahoma, covering 310,000 square feet.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$USAR Analyst Ratings
Wall Street analysts have issued reports on $USAR in the last several months. We have seen 2 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Canaccord Genuity issued a "Buy" rating on 06/13/2025
- Roth Capital issued a "Buy" rating on 05/29/2025
To track analyst ratings and price targets for $USAR, check out Quiver Quantitative's $USAR forecast page.
$USAR Price Targets
Multiple analysts have issued price targets for $USAR recently. We have seen 3 analysts offer price targets for $USAR in the last 6 months, with a median target of $16.0.
Here are some recent targets:
- Derek Soderberg from Cantor Fitzgerald set a target price of $16.0 on 08/01/2025
- George Gianarikas from Canaccord Genuity set a target price of $17.0 on 06/13/2025
- Suji Desilva from Roth Capital set a target price of $15.0 on 05/29/2025
Full Release
STILLWATER, Okla., Aug. 05, 2025 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) (USAR or the Company), today announced that it has signed a joint development agreement (JDA) with ePropelled, Inc. to develop a strategic supply and purchase relationship of the Company’s sintered neo magnets for use in ePropelled’s state-of-the-art motors, which are used in a multitude of uncrewed air, land, and sea vehicles (commonly referred to as drones).
USAR will immediately begin prototyping neo magnets for use in ePropelled’s high-performance motors, controllers, generators, and power management systems. ePropelled’s systems are used in uncrewed vehicles (UAV) for air, land, and sea – from large-payload aerial drones and long-range defense applications, as well as for small surveillance and commercial drone designs.
“This agreement is another milestone in our efforts to fill our 2026 pipeline and work through the development and qualification process with customers across industries as we complete the commissioning of our Stillwater manufacturing facility,” said Joshua Ballard, CEO of USA Rare Earth. “We are very pleased to partner with such an innovative company as ePropelled, a global leader in magnetics engineering and a proven pioneer in the design and production of electric propulsion solutions. We look forward to working with the ePropelled team to develop a true partnership in providing Made-in-the-USA designated high-quality, high-performance magnets for use in their pioneering and innovative solutions.”
“We’re thrilled to partner with USA Rare Earth to secure the rare earth materials essential to our uncrewed vehicle solutions,” said Nick Grewal, ePropelled’s Founder, Chairman and CEO. “Expanding our supply chain — both in the U.S. and globally — is key to meeting the high expectations of our customers and staying ahead in this fast-moving industry.”
Operating worldwide, ePropelled serves a broad customer base that spans aerospace, defense, industrial automation, and maritime industries. The company’s technologies are used in mission-critical applications including long-endurance surveillance drones, robotic ground vehicles, and autonomous marine vessels. Its compliance with international defense standards (e.g. NDAA) and focus on domestically manufactured components make it especially attractive to governments and OEMs seeking secure, export-ready solutions.
For more information, please visit USARE.com and connect with us on LinkedIn and X .
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.
About ePropelled
Based in Laconia, New Hampshire, USA,
ePropelled, Inc.
is a leading global technology provider specializing in smart propulsion and energy management systems for uncrewed vehicles for air, land and sea. Founded in 2018, ePropelled holds 49 patents and serves customers worldwide from its New Hampshire headquarters and manufacturing center, supported by R&D and operations facilities in the UK and India. ePropelled products are engineered to optimize performance, reduce energy consumption, and support the speedy transition to a sustainable future. For more information, contact ePropelled at
[email protected]
, call 603-236-7444, or visit
ePropelled.com.
Investor Relations Contact:
Lionel McBee
VP, Investor Relations
[email protected]
Media Relations Contact:
Cricket PR
Brian Hyland
[email protected]
ePropelled Media Contact:
Cookson Communications
Kristen Lestock
[email protected]
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a0ed2c46-b1bf-46df-bc3e-728c42f85d63
