Highlights
- Noveon Magnetics signs long-term supply agreements with ABB and GM for U.S.-made neodymium-iron-boron (NdFeB) magnets across industrial and automotive sectors.
- The company is positioned as the only operational U.S. manufacturer of sintered NdFeB magnets, offering vertically integrated, high-performance magnet solutions.
- These strategic partnerships support domestic manufacturing, supply chain resilience, and critical components for electrification across energy, automotive, and defense markets.
According to an August 14 press release (opens in a new tab), Noveon Magnetics (opens in a new tab) has signed a long-term agreement to supply ABB with U.S.-made neodymium-iron-boron (NdFeB) magnets for industrial motor applications across North America. Deliveries begin in August 2025, with production scaling to cover all magnet parts used in ABB’s North American motor facility by the end of 2026—a multi-million-dollar commitment that locks in capacity for a critical component.
A day earlier, Supply Chain Dive reported (opens in a new tab) that General Motors inked a multi-year agreement with Noveon to supply sintered NdFeB magnets for its full-size trucks and SUVs. Initial deliveries started in July, giving GM a domestic source for magnets used across powertrains and vehicle systems.
Why ABB matters: motors are everywhere
Industrial motors sit at the heart of cooling towers, water and wastewater pumps, and building systems, and they’re proliferating as electrification and efficiency standards rise. ABB framed the deal as a resilience play for growth segments like data centers and HVAC, citing Noveon’s “U.S.-based manufacturing, proven quality, and scalable capacity.” The agreement starts with monthly deliveries in August and grows to full supply by late 2026, giving ABB a predictable domestic pipeline as demand swells.
What Noveon is actually selling: EcoFlux™ and vertical integration
Noveon’s pitch to ABB centers on its EcoFlux™ magnets—engineered for high performance at elevated temperatures and produced through a vertically integrated process that emphasizes resource efficiency and the beneficial use of recycled materials. The ability to tailor magnet formulations and grades for demanding motor environments is a competitive lever, especially when customers are designing for heat, duty cycles, and lifetime efficiency.
The GM deal: a domestic bridge across EV and ICE platforms
As reported August 13 by Supply Chain Dive, GM’s agreement taps Noveon for sintered NdFeB magnets—the most powerful permanent magnets commercially available—for components ranging from electric traction motors and regenerative braking to electric power steering, alternators, actuators, and sensors. GM’s global chief procurement officer said working with domestic manufacturers like Noveon boosts resiliency and supports American jobs, and early deliveries are already in motion. The article also notes GM’s parallel interest in next-generation magnet tech via its 2023 investment in Niron Magnetics, signaling a dual-track strategy: secure rare-earth magnets now while exploring rare-earth-free alternatives over time.
Sintered NdFeB: small parts with outsized leverage
The backbone of both announcements is sintered NdFeB—a class of magnets formed by grinding alloys into powders, pressing them under high pressure, and sintering at around 1,100°C to create dense, high-coercivity parts. Because these magnets deliver exceptional strength-to-weight and temperature performance, they’re irreplaceable in many high-efficiency motors and actuators. Noveon is currently described as the only operational U.S. manufacturer of sintered NdFeB magnets, a distinction that turns a mid-sized Texas producer into a strategic supplier for multiple sectors at once.
Supply chain strategy, not just supply
The ABB agreement underscores a classic reshoring calculus: lock in domestic capacity to buffer against geopolitical risk and logistics shocks. Noveon’s CEO put it plainly in the press release—U.S. manufacturing leadership and smart supply chain planning can help global companies navigate volatility and meet rising demand. That’s not just rhetoric; it’s the core value proposition for customers that can’t afford line stoppages because a $10 magnet is stuck overseas.
Where Noveon fits in the energy and defense arc
Beyond autos and building systems, Noveon flags demand from clean energy, robotics, and defense—fields where magnet performance, provenance, and security vetting matter. For wind turbines, industrial robots, and military systems, a domestic magnet source reduces compliance friction and shortens iteration loops between design and production. The ABB and GM wins legitimize Noveon’s quality and throughput at precisely the moment these markets are scaling.
Execution risk and the road to 2026
The bar is high. ABB’s schedule requires Noveon to ramp from steady monthly shipments in 2025 to full-scope supply by the end of 2026. GM’s needs are large and diversified across platforms, from ICE trucks to hybrids and EVs. Meeting those commitments consistently—while maintaining the high-temperature performance ABB requires and the volume flexibility autos demand—will hinge on Noveon’s vertical integration and its ability to add shifts, tooling, and inspection capacity without quality drift. The pay-off is equally clear: dependable execution could cement Noveon as the default U.S. magnet supplier for industrial and mobility incumbents.
The big idea: a domestic flywheel for critical components
Taken together, the ABB and GM deals crystallize Noveon’s overall idea: use a tailored, vertically integrated magnet platform to create a high-reliability supply for mission-critical applications—and do it domestically. If Noveon hits its milestones, these agreements won’t just fill orders; they’ll help re-establish a foundational piece of the U.S. electrification stack, from pumps and building systems to the drivetrain components that move people and goods.
GM is apparently tapping Noveon, MP and E-VAC for those RE magnets. Makes you wonder what the likes of Ford, Stellantis, Hyundai, Kia, etc., all building within US borders have in mind for non-Chinese sourcing of those pesky little fellas. GLTA – REI