Noveon, the only operational manufacturer of sintered neodymium-iron-boron (NdFeB) magnets in the United States, began delivering magnets to GM in July. These magnets, known for being the strongest and most advanced permanent magnets commercially available, are critical for various automotive applications. The agreement ensures a steady supply for GM’s manufacturing needs.
Rare earth materials are vital for automakers, particularly those producing electric vehicles, which rely heavily on these resources for efficient and high-performance components. Global demand for rare earths remains high, with China handling over 90% of the world’s processing capacity. In April, China introduced new export licensing regulations, which have tightened the availability of these materials for manufacturers in the West, impacting industries ranging from automotive to aerospace and consumer goods.
Ford executives have noted that limited access to rare earth magnets from China has affected their production processes. The supply constraints highlight the importance of securing alternative sources, as demonstrated by GM’s partnership with Noveon. This collaboration strengthens GM’s supply chain resilience and supports its production goals for SUVs and trucks.
Noveon emphasized its unique position in the U.S. market, stating: “We are proud to be the only company producing sintered NdFeB magnets domestically, enabling us to support GM’s manufacturing with high-quality materials.” The partnership reflects ongoing efforts by automakers to navigate global supply challenges while maintaining production stability.
