General Motors has signed a multi-year agreement with Texas-based Noveon Magnetics to secure a domestic supply of rare earth magnets, which are essential for use in components of the automaker’s full-size SUVs and trucks, the magnet manufacturer said on Wednesday.
The deal marks a strategic move by General Motors to reduce reliance on overseas suppliers, particularly China, which currently dominates more than 90% of the world’s rare earth processing capacity. In April, China introduced new export licensing rules that have tightened access to these critical materials for Western industries.
Rare earth magnets, especially sintered neodymium-iron-boron (NdFeB) magnets, are vital to the operation of electric motors and are widely used in electric vehicles, aerospace systems, and household appliances. Automakers remain among the largest industrial consumers of rare earth materials. Ford Motor executives have previously cited limited availability of these magnets from China as a factor that has disrupted vehicle production.
According to Noveon, deliveries to General Motors began in July. The company noted that it is currently the only operational manufacturer of sintered NdFeB magnets in the United States. These magnets are known for their strength and efficiency, making them the most advanced type of permanent magnet available on the market.
The agreement is part of a broader industry effort to localize critical components and strengthen supply chain resilience amid geopolitical uncertainties and rising demand for electric and hybrid vehicles.