GM Secures Rare Earth Magnets from US Suppliers Amid China Dominance

General Motors has signed a deal with Noveon Magnetics to secure rare-earth magnets for its pickup trucks and SUVs, marking the third domestic supply contract the automaker has signed. The agreement, along with two others with MP Materials and E-Vac Magnetics, will allow GM to get the majority of rare-earth magnets directly from domestic suppliers, reducing dependence on China. This move is seen as a positive step in securing the US supply chain for critical minerals.

General Motors (GM) has signed a multi-year agreement with Noveon Magnetics to supply rare-earth magnets for its full-size SUVs and trucks. This deal marks the third domestic supply contract for GM, following agreements with MP Materials and E-Vac Magnetics. The partnership aims to reduce the automaker's dependence on China for critical minerals, a move that aligns with broader efforts to strengthen the U.S. supply chain.

Noveon Magnetics, based in Texas, began delivering magnets to GM in July. The company is the sole operational producer of sintered neodymium-iron-boron (NdFeB) rare earth magnets in the United States. These magnets are essential for various vehicle components, including those used in electric vehicles (EVs).

The agreement comes at a time when China controls more than 90% of global rare earth processing capacity. In April, China imposed new export licensing rules, tightening supply to Western manufacturers. This has led to disruptions in production for automakers, including Ford, which has faced challenges due to a pinched supply of rare earth magnets.

GM's global chief procurement officer, Jeff Morrison, highlighted the significance of the deal. "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," he said.

This move is part of GM's broader strategy to mitigate the impact of tariffs and reduce its dependence on foreign suppliers. In its second-quarter earnings call, GM committed to growing its domestic supply chain. The company reported a significant decline in profits due to trade tariffs, with a $1.1 billion net impact in Q2 2025.

The deal with Noveon Magnetics is a step towards achieving this goal. By sourcing the majority of its rare earth magnets domestically, GM aims to enhance its supply chain resilience and support the U.S. economy.

References:
[1] Reuters. (2025, Aug 6). GM signs rare-earth magnet deal with Noveon Magnetics. Retrieved from https://www.reuters.com/business/autos-transportation/gm-signs-rare-earth-magnet-deal-with-noveon-magnetics-2025-08-06/
[2] Stocktwits. (2025, Aug 6). GM secures rare-earth magnet supply from Texas partner amid push to mitigate tariffs. Retrieved from https://www.newsbreak.com/stocktwits-303303202/4159683778974-gm-secures-rare-earth-magnet-supply-from-texas-partner-amid-push-to-mitigate-tariffs
[3] Yahoo Finance. (2025, Aug 6). GM strikes deal with Noveon Magnetics for supply of rare earth magnets. Retrieved from https://finance.yahoo.com/news/gm-strikes-deal-noveon-magnetics-165318004.html
[4] InvestorsObserver. (2025, Aug 6). GM declares rare-earth independence and dumps China for U.S. supply chain. Retrieved from https://investorsobserver.com/news/stock-update/gm-declares-rare-earth-independence-and-dumps-china-for-u-s-supply-chain/