Dive Brief:
- General Motors has signed a multi-year supply agreement with Texas-based Noveon Magnetics for neodymium magnets (NdFeB magnets) for its full-size trucks and SUVs, according to an Aug. 6 press release.
- The deal provides GM with a steady supply of rare earth magnets, while also helping to establish a more resilient domestic supply chain and lessen the reliance on imported critical materials.
- "We're proud to be delivering critical rare earth magnets in support of some of America's most iconic vehicles," said Scott Dunn, CEO of Noveon Magnetics, in the release. "This agreement is a testament to what American manufacturers like GM and Noveon can do to develop supply chains and partnerships right here in the U.S."
Dive Insight:
Noveon Magnetics has already started production of magnets for GM. The first deliveries began last month. NdFeB magnets, which are primarily composed of neodymium, iron and boron, are considered the strongest type of permanent magnet commercially available. They are used in a wide variety of automotive and industrial applications.
The company is supplying GM with sintered magnets, a manufacturing process that results a very strong magnetic field. Once the alloys are ground into a powder, the material is pressed into a mold under high pressure. The sintering process heats the pressed blocks of alloy to temperatures of roughly 1,100°C, which fuses the particles together, forming a dense, solid magnet, according to Noveon.
Noveon is currently the only active manufacturer of sintered NdFeB rare earth magnets in the U.S., according to the release. The company intends to scale production as demand for these magnets accelerates across the automotive, energy and industrial sectors.
Although NdFeB magnets are used in both electric and internal combustion engine vehicles, they are a key component for the electric motors of EVs and hybrid vehicles. They are also used in regenerative braking systems, electric power steering systems and other EV powertrain components. For ICE vehicles, NdFeB magnets are used for 12-volt electric motors and actuators, such as wiper motors, power door locks, alternators, fan motors and engine control sensors.
"Working with domestic manufacturers like Noveon allows us to increase the resiliency of our supply chain while supporting American jobs and strengthening our industry and economic security," said Jeff Morrison, GM global chief procurement officer, in the release. "Noveon's magnets will support our most popular vehicles and help continue to deliver a leading portfolio of choice for our customers."
Outside of GM’s new supply agreement with Noveon Magnetics, the automaker’s venture capital arm participated in a $33 million funding round of Minnesota-based Niron Magnetics in November 2023. Niron is a producer of rare earth-free iron nitride magnets made with inexpensive and abundant iron and nitrogen. These magnets cost around 50% less to produce than rare earth magnets, which in the future could help make EVs more affordable.
