General Motors (GM) has recently signed a multi-year agreement with Noveon Magnetics, a US-based company, for the supply of rare earth magnets that are essential for various vehicle components in its full-size trucks and SUVs. The collaboration between GM and Noveon kicked off with immediate production, and the initial batch of magnets was delivered last month.
This strategic partnership, combined with GM’s existing 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 move is crucial in establishing a reliable supply chain within the US, especially in light of China’s recent export controls on rare-earth magnet production as a response to US tariff threats.
Noveon, as the sole operational producer of sintered NdFeB rare earth magnets in the country, offers a vertically integrated, wholly domestic solution for the critical supply of these magnets. The company’s EcoFlux magnets are designed for greater resource efficiency, incorporating the use of recycled materials.
These magnets play a vital role in various applications, including electric vehicles (EVs). Noveon Magnetics CEO Scott Dunn expressed pride in delivering critical rare earth magnets to support some of America’s most iconic vehicles, emphasizing the importance of American manufacturers like GM and Noveon in developing local supply chains and partnerships.
GM’s global chief procurement officer Jeff Morrison highlighted the significance of working with domestic manufacturers like Noveon to enhance the resiliency of the supply chain, support American jobs, and strengthen industry and economic security. GM’s collaboration with MP Materials, initiated in 2021, aims to establish a US supply chain for these magnets.
Despite facing a significant decline in profits, with a $1.1 billion impact in the second quarter attributed to trade tariffs, GM remains committed to advancing its operations. The company reported a net income drop to $1.9 billion, despite an increase in global unit sales from 1.43 million in Q2 2024 to 1.54 million in Q2 2025.
In conclusion, GM’s partnership with Noveon Magnetics signifies a crucial step towards securing a reliable supply of rare earth magnets domestically, supporting American manufacturing, and bolstering the automotive industry’s resilience in the face of global trade challenges.
