General Motors (GM) has inked a multi-year agreement with Noveon Magnetics, a US-based company, for the supply of rare earth magnets essential for various vehicle components and for its full-size trucks and SUVs.
The partnership between GM and Noveon began with immediate production, and the first batch of magnets was delivered last month.
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This latest agreement, along with GM’s previous contracts with MP Materials Corp and E-Vac Magnetics, a unit of Germany’s Vacuumschmelze based in the US, will enable GM to source the majority of its rare-earth magnets domestically.
This contract is a significant step in setting up a reliable supply chain within the US, especially considering the recent export controls imposed by China on rare-earth magnet production as a countermeasure to US tariff threats.
Noveon is said to be the sole operational producer of sintered NdFeB rare earth magnets in the country.
It provides a vertically integrated, wholly domestic solution for the critical supply of these magnets.
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By GlobalDataThe company said its EcoFlux magnets are designed for “greater resource efficiency”, incorporating the use of recycled materials.
Noveon’s magnets are integral to various critical applications, including electric vehicles (EVs).
Noveon Magnetics CEO Scott Dunn said: “We’re proud to be delivering critical rare earth magnets in support of some of America’s most iconic vehicles.
“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 US.”
GM global chief procurement officer Jeff Morrison said: “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.”
GM’s collaboration with MP Materials started in 2021, aimed at establishing a US supply chain for these magnets.
GM reported a significant decline in profits, with a $1.1bn impact in the second quarter (Q2) attributed to the repercussions of trade tariffs.
The company’s net income fell to $1.9bn, a reduction of over a third from the previous year. This occurred even though global unit sales saw an increase from 1.43 million in Q2 2024 to 1.54 million in Q2 2025.
