Arnold Magnetic Technologies Corporation ("Arnold"), a subsidiary of Compass Diversified (NYSE: CODI), and a leading global manufacturer of high-performance magnets and precision components, and USA Rare Earth, Inc. (NASDAQ:USAR) announced a mutual sales and distribution agreement that strengthens the domestic supply chain for high-performance rare earth permanent magnets in the United States.

Under the agreement, each company is authorized to sell and distribute the other's products while remaining independent contractors in a non-exclusive partnership. Arnold will offer USAR's processed and refined neodymium-iron-boron (NdFeB) materials and finished magnets, while USAR will offer Arnold's finished permanent magnets produced from samarium-cobalt (SmCo) and neodymium-iron-boron (NdFeB) materials. Each party remains responsible for product quality, warranties, and any product-related liabilities for the goods it manufactures, and neither company will share in the proceeds from the other's resale of products to end users.